Securrency: Delivering real liquidity to the digital asset marketplace

After the success of Securrency’s Series A funding round, which saw the participation of leading global investors, 2020 is set to be another landmark year in delivering real liquidity to the digital asset marketplace, writes Manuel Rensink.

The fundraising initiatives go hand in hand with the Securrency’s priorities for 2020, namely; to advance the adoption of the software and platform development, integrate with strategic partners and other customers and build out the company’s operational structure.

The primary objective of  Securrency is to become a multi-jurisdictional compliance service provider through the development and adoption of the core technology.

The core technology is based on a unique off-chain identity and compliance framework – called the “Global Identity Mesh” – to automate regulatory compliance for digital securities as they move across systemic and national borders.

Ultimately, the technology and software development is aimed at spearheading initiatives to create standards that are not dependent on a particular blockchain. In this sense, the team is developing a multi-jurisdictional compliance framework to streamline the global movement of digital assets without sacrificing transparency and compliance.

Part of the solution lies in Securrency’s patent-pending “Compliance Aware Token”, which delivers real liquidity outside of its native blockchain environment and even across non-blockchain environments without losing its compliance characteristics.

The second part of the roadmap in 2020 focuses on integrating the technology with strategic partners and customers, which will be rooted in convenience and transparency.

The first part of convenience is optionality: simply put, the Securrency framework does not require existing market participants to rip out old legacy systems and move things on-chain, nor does it require them to choose between using public ledgers or building extensively and expensively on private permissioned ledgers to harness the efficiencies of digital assets.

The Rules Engine provides the efficiency and transparency to integrate with partners, providing a plain-language abstraction layer that allows companies, along with their lawyers and advisors to rapidly create policies, audit them, and update them in real-time, without having to reissue the tokens that are governed by those policies. This system also creates a high degree of transparency, as the policies associated with a token can then be easily viewed by compliance officers and regulators to ensure accuracy.

By meeting these core objectives, Securrency envisages boosting high-quality, yield-bearing token issuances as the company unlocks the accessibility which fuels mass global adoption of distributed ledger technology in financial services.

Through its institutional-grade, blockchain-based financial and regulatory technology, Securrency’s advanced compliance tools provide a transparent, secure and efficient process for investors to tap this burgeoning asset class.

WisdomTree, as a high-profile, highly-credible asset manager, and, a strategic investor in Securrency, provides an incredible opportunity to deploy the technology into the exchange-traded fund (ETF) ecosystem.

The bottom line is the market needs recognizable products that already enjoy substantial liquidity, so ETFs are a logical and exciting use case for the technology.

Most of the ETF-related digital securities activity has been focused on cryptocurrency ETFs, and WisdomTree has been active in this space in Europe.

ETFs will not only attract the large, household-name exchanges, transfer agents, and investment services providers, but will also make it easier and safer for a much broader base of investors to participate in these digital investment products.

 Manuel Rensink is Strategy Director at Securrency

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