The popular tokenization platform, Securitize, has introduced a pan-European trading and settlement system on Avalanche. The system is compliant with the regulatory requirements of the United States and the European Union.
Securitize affirmed that it has received the license to become an investment firm within the Eurozone. The company also revealed that it has been accredited to operate as a Trading and Settlement System in the region.
The firm claims that it has become the first company to have a controlled digital securities structure in both major regions. The acceptance is proof of the suitability of tokenized financial instruments for regulated markets.
Securitize elaborated that its new system will enable issuing, dealing, and settling of the digital securities that comply with the European and American standards. These are in the form of tokenized equity, debt and investment-fund products which act under the securities supervision.
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According to the firm, the approval will enable traders and issuers in both zones to trade using one regulatory platform. It eliminates fragmentation where cross-border digital securities need separate systems.
Supporters argue that settlement using blockchain makes the transaction faster and less frictional. They also add that tokenization provides more open pathways for monetary involvement.
Securitize reported that the first issuance for Europe will occur at the beginning of next year. This is happening as the price of real-world assets in the crypto market continues to gain popularity.
The update has put Avalanche at a competitive advantage since networks are competing to provide services for institutional markets.
BlackRock and Ark Invest are among the top financial players supporting Securitize. In the recent past, the company announced that it plans to undergo a public listing through a merger.
As more institutional securities get regulatory acceptance, industry observers anticipate more institutional engagement in digital securities. Another important aspect in the update is the hope that blockchain-driven settlement and trading will still be an essential element of financial markets.
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