Sony announced its investment in the San Francisco-based blockchain firm called Securitize, a well-known security token platform
Securitize, a Blockchain-based company that helps companies issue security tokens, announced that Japanese multinational Sony has also invested in it. According to the company, the investment was made as part of a Series A financing round.
Sony invests in Securitize through its venture capital fund SFV ・ GB L.P. This fund, in turn, is co-administered by Sony Financial Ventures (SFV) and Global Brain.
SFV GB’s latest investment is one of Securitize’s recent financing firms, which raised more than USD $14 million from VC (Venture Capital) firms, including Nomura Holdings, MUFG Innovation Partners, Santander InnoVentures and Blockchain Capital.
In this regard, the CEO and co-founder of Securitize, Carlos Domingo, commented:
“The investment validates Securitize as one of the most important architects of digital capital markets, while adding another important name to a growing list of companies that are investing in digital values such as the future of global capital markets.”
Sony has been considering Blockchain for several use cases, including digital rights management (DRM). The company could use the technology for PlayStation 5.
SFV as a strategic arm
SFV is part of the Sony Financial Group, a Tokyo-based financial services group that includes the Sony Financial Holdings and its subsidiaries, including Sony Life Insurance, Sony Assurance, Sony Bank, Sony Payment Services and Sony Lifecare, among others .
The venture capital firm invests in new companies and businesses in Asia, North America and Europe. SFV has been very active in supporting disruptive technologies, including artificial intelligence (AI), the Internet of things, and robotics.
SFV director Junji Nakamura commented:
“Securitize is expertly leveraging asset chain technology to create a new class with amazing skills. We are very happy to take on this Consolidate challenge and create new value.”
Utility of security tokens
Security tokens were considered a great trend last year, along with stablecoins (stable currencies). Security Token are cryptographic tokens similar to any other, but linked to traditional security, that is, to interchangeable financial assets, such as bonds, swaps, futures.
The objective of Securitize is to modernize capital markets by helping companies to issue digital securities, which have considerable advantages in terms of liquidity, speed of negotiation and convenience.
Sony’s latest investment shows that Japanese market participants are increasingly interested in security tokens. In 2019, MUFG formed a research consortium together with 21 other companies to explore Blockchain and security tokens for automatic securities settlement.