News has surfaced this week regarding Ripple and Coinbase. Upon initial inspection, one might get a little excited in the hope that this finally means XRP could see a listing on the standard version of Coinbase, however this isn’t really the case just yet. To give you some background, the XRP and Coinbase saga has continued for a long time now, with many XRP investors keen to see XRP go live on the standard version of Coinbase in order to allow XRP to become a more mature and more highly traded asset. Going live here will make XRP adoption a far more realistic concept.
So, no, Coinbase won’t be listing XRP on their standard platform just yet, sorry!
The news concerning Ripple and Coinbase however is positive and sees the backing of a brand new idea from a team called Securitize. Securitize are a US based firm that are making the world of tokenizing more accessible to other companies. By working with Securitize, companies will be able to tokenize their own assets and securities for future sale via the blockchain. This news comes after Securitize announced they had received a round of funding in excess of $12.75 million, of which contains donations from both Coinbase Ventures and the Ripple Xpring fund.
Currently based within the United States, Securitize wish to take their business further and as a result, these funds will be used to allow for the expansion of the company into South America and the Pacific regions of Asia in order to start providing services to businesses based within these parts of the globe.
As stated, the key objective here for Securitize is to allow for the tokenisations of securities, this is something that could sound a little familiar to Ripple. Of course, I’m not saying that XRP is a security, however many people in the industry believe XRP is a security - this however is a debate for another video.
What is a security?
According to Investopedia:
“A security is a fungible, negotiable financial instrument that holds some type of monetary value. It represents an ownership position in a publicly-traded corporation (via stock), a creditor relationship with a governmental body or a corporation (represented by owning that entity's bond), or rights to ownership as represented by an option. The entity that creates the securities for sale is known as the issuer, and those that buy them are, of course, investors. Generally, securities represent an investment and a means by which municipalities, companies and other commercial enterprises can raise new capital.”
The aim of this project is to help other companies turn their securities (and other assets) into a token that can exist on and be traded on the blockchain. It’s sort of a convergence between traditional stock/trading and cryptocurrency/blockchain technology.
According to Sludgefeed, Carlos Domingo, the Founder and CEO of Securitize believes that the future of securities trading lies within blockchain technology:
“Carlos Domingo, who formerly led the R&D division at Telefonica, hopes that by transitioning securities to decentralized ledgers, they will be more transparent and auditable. Digitization would also facilitate instantaneous security transactions and make the current 2-day settlement period unnecessary.”
Moving onto the blockchain will help these companies trade their securities in a more efficient manner, allowing for instant and secure transactions away from the traditional, slower securities exchange procedures.
With backing from Ripple and Coinbase, Securitize are starting to grow at an exciting rate and really do plan to expand their operations on a global scale. We should also mention that though Securitize are a start up, they have already been involved with a number of major companies, according to Sludgefeed:
“To date, Securitize has tokenized a number of companies, including 22x, SPiCE VC (Domingo’s VC firm) and Augmate. Even its lead investor, Blockchain Capital, leveraged the Securitize protocol for its BCAP security token. The company refers to this process as a digital security offering (DSO).”
Investment from Coinbase and Ripple
Let’s consider that the clear investment from Coinbase and Ripple here is not an accident, this move does complement the pairs potential future plans for looking at dealing with securities and the legalities behind them. In short, we should expect that Ripple and Coinbase aren’t just silent investors in this, at the very least they will be keeping a close eye on Securitize to see how their project can help with the future plans of both Ripple and Coinbase.
Basically - we don’t expect that this is the last we will hear from Ripple or Coinbase on the matter of their investment in Securitize!