In a strategic move that marks a significant step for digital finance, Securitize has obtained regulatory approval to operate a tokenized securities platform within the European Union. This authorization extends its reach, as it previously held similar credentials in the United States, thereby linking two major financial markets. Securitize plans to leverage this new capability to enhance the issuance, trading, and settlement of tokenized assets across these regions.
What Does Securitize’s New License Involve?
Recently granted by Spain’s CNMV, the license allows Securitize to offer a regulated framework specifically for handling tokenized securities in the EU. Securitize is now the singular entity sanctioned to marry the US and EU markets with licensed tokenized securities infrastructure, promising a seamless cross-border operation. According to Securitize, using Avalanche as the platform, the company will integrate key functions like trading venue operations and securities depository roles within a decentralized network.
How Will This Impact Major European Markets?
With this new authorization, the firm can exercise its Investment Firm license, awarded in late 2024, across key European markets such as Germany, France, and Italy. This license permits Securitize to handle client orders and manage assets in custody, alongside operating as a transfer agent for digitized securities. Carlos Domingo, the CEO of Securitize, emphasized the strategic importance of the license, saying it symbolically unifies major financial hubs:
“This approval connects two of the world’s biggest financial markets.”
What Does This Mean for Institutional Clients?
Securitize’s client list includes prominent institutions like BlackRock, Apollo, and VanEck, which are likely to benefit from streamlined processes in issuing, trading, and settling tokenized securities. These clients can expect their dealings in EU markets to be more efficient and transparent due to Securitize’s robust on-chain infrastructure.
The firm’s considerable growth is highlighted by its BUIDL fund, which manages over $4 billion in assets, signifying the capability and trust it enjoys in the financial industry. By bridging legal and technical frameworks in both the US and EU, Securitize lays down essential infrastructure for future developments in the financial sector.
Working closely with regulators from the CNMV, ESMA, and other major financial bodies in the region, Securitize has established a regulatory framework that promotes both the issuance and settlement of tokenized securities, enhancing the area’s financial robustness.
This development offers a distinctive advantage to Securitize, aligning it as a key player in the evolution of regulated tokenization across both continents. As tokenization becomes integral to modern financial systems, understanding the variations and regulatory needs between regions like the EU and the US is pivotal for success.
The dual-region license that Securitize now holds represents more than just an administrative achievement. It underlines the importance of close regulatory collaboration and technical integration in fostering global financial markets that are both adaptable and resilient.
