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Securitize's Perspective on Current Market Conditions and The Road Ahead

A Message from Securitize CEO Carlos Domingo

by Carlos Domingo
Nov 17, 2022

Securitize is not a cryptocurrency business – we enable the securitization of traditional financial products and real world assets recorded on the blockchain. But we live in a very interconnected world and use public blockchains, support USDC, and offer securitized cryptocurrency funds through our subsidiary Securitize Capital in partnership with industry leaders. So, we thought you might appreciate a brief update regarding the recent market disruptions and our perspective on the best path forward in the weeks and months ahead.

First things first. Securitize Capital has:

  • No material exposure to FTX or any unregulated crypto exchanges, nor does it have any exposure to or business relationship with Genesis Trading. Investor funds have not been impacted by the recent events.
  • Moved its actively-managed USDC, BTC, ETH and S&P funds into segregated cash or cash equivalent accounts out of an abundance of caution for the time being.
  • Not experienced any disruption to deposits or withdrawals in fiat. Withdrawals in the form of USDC have been temporarily paused by Prime Trust due to volatile pricing spreads, and that feature is expected to return soon.

Securitize's view on where the industry should go from here

Over the past several years, many crypto businesses and personalities have avoided regulation, grown too fast and become superstars only to collapse due to fraud, mismanagement, or the inability to continue engaging in regulatory arbitrage. Yes, submitting to regulation is the harder path--but it is necessary for investors to trust you with their funds, and for this industry to grow and endure. While the existing regulatory framework is not perfect (and we will continue to advocate for certain modifications), it is what we have and it is better than the alternatives of no regulation or investor harm.

When we started Securitize five years ago, we recognized that the technology and demand for tokenized securities did not yet exist at that time. However, we were confident that demand would come, we could build the technology, and that digital securities would thrive when operating within a regulatory framework with investor protections. After a lot of hard work and patience, today we are very proud that through digital asset securities, investors now have access to opportunities on our platform that were previously out of reach, including private equity, fine art and start-up companies. Innovative businesses can now benefit from digitalization in reaching new kinds of investors to raise capital and build. Demand for and adoption of regulated digital securities has grown significantly over the past year, and it’s just the beginning.

Enduring adoption of any new technology is built upon good judgment, some trial and error, and trust – and trust must be earned. In the weeks and months ahead, we will continue to be an active voice in building a mature blockchain industry and will continue to promote our belief that transparency and investor protections are central to adoption of digital assets and the trust and confidence required for a healthy and thriving digital asset ecosystem.

Carlos Domingo, CEO

Securitize

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