Securitize launches peer-to-peer security token trading service

Tokenized security issuance platform Securitize has launched a new service that it says will make it possible for users to trade tokenized securities peer-to-peer.

The service, called Instant Access, is being pitched as a means for exchanging digital securities in a way that is both compliant with regulators and poses "no counterparty risk," according to the firm.

Specifically, the tool lets users "privately create an indication of interest to sell their digital securities with a simple web link," according to a press statement. The link can be shared via email, text message, or any other way you might share such a link.

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As long as a potential buyer has KYC/AML approval and is registered with the entity that originally issued the security, they can purchase the token directly via the link.

Under the hood, Instant Access is powered by Airswap, a peer-to-peer trading network built on Ethereum. In November of 2018, Airswap and Securitize claimed to have demonstrated the first-ever trade of security tokens using what they called a "decentralized compliance protocol."

Securitize isn't the only startup looking to stake claim to the market for digital securities, which to date has seen much more hype than adoption. Overstock's tZero, for instance, recently announced a deal to turn $300 million worth of real-estate assets into digital tokens.

About Author

Mike is a Senior Editor at The Block. Previously he was a senior reporter at MIT Technology Review, where he covered a range of topics from solar cells to smart contracts.