Securitize, a digital securities issuance platform has announced a new tool that assures that secondary market transaction of digital securities are compliant with regulations. On April 22, Securitize wrote a blog post highlighting that the platform uses smart contracts on the Ethereum blockchain while streamlining the creation of compliant peer-to-peer transactions by investors in private securities.
CEO Carlos Domingo tweeted with a link on how to use Securitze’s instant access:
More details about how it works here https://t.co/EqPVkMokyl and more improvements coming soon, stay tuned. — Carlos Domingo (@carlosdomingo) April 23, 2020
To initiate a transaction, investors privately create an indication of interest to sell their digital securities with a web link, which then can be posted and shared across various channels. The blog post detailed:
“Instant Access allows investors to privately create an indication of interest to sell their digital securities with a simple web link. That link can be posted and shared with anyone, anytime, on any platform they prefer, including via email or text message.”
This is the true manifestation of how blockchain based securities implement instant delivery vs payment (DvP) transactions of private securities with no counter-party risk and no trading fees. — Carlos Domingo (@carlosdomingo) April 23, 2020
Regarding its fees, Securitize added:
“There are no fees associated with using Instant Access to create or accept transfers. The only costs come from processing the transaction on the Ethereum blockchain. These costs (known as “gas costs”) are unrelated to the value of the securities being transferred. Neither Securitize nor any other party will be paid fees for these transactions.”