Securitize’s mission is to be the leading platform for enabling compliant Digital Securities issuance and liquidity on the blockchain. To achieve this, Securitize has built a technology platform that provides the tools to issuers to manage all the elements in the full Digital Security lifecycle, including the smart contracts that actually support the token information on the Ethereum blockchain.
Securitize is designing its smart contract infrastructure by creating a flexible ecosystem that aids the main stakeholders in the Digital Security space: Issuers, Investors and Exchanges.
The potential of this ecosystem and the complexity of the different needs for each stakeholder and category of assets involved require a new architectural model. This model should allow for flexible and simple evolution by different actors. It should be a Digital Ownership Architecture that facilitates a dynamic and open participation of multiple actors.
Securitize is implementing this new architecture focused on creating a DS Services (Digital Securities Services) infrastructure which will support third party DS Apps (Digital Securities Apps) to address all aspects of the Digital Security lifecycle. We believe this ability for any actor to be able to create new DS Apps to bring more value to an existing Digital Security and extend its capabilities in an open way, is critical to ensure the future-proofing of this approach.
The interaction between the different elements is managed by DS Protocol (Digital Securities Protocol) a layered and extensible protocol. This protocol provides value to stakeholders while addressing compliance by leveraging the immutable, public, distributed ledger nature of the blockchain.
Securitize’s first implementation will work over the Ethereum blockchain, but the goal is to transfer this architectural model to additional distributed ledger systems.
Other initiatives have focused in the issuance and compliance aspects for a Security Token Offering, which are very important by themselves, mostly addressing the token issuers’ goals. In some cases, their platforms follow a module-based structure, which behave like plug-ins that fulfill certain functions in a narrow way on a centralized solution. We believe the ability to openly create independent apps for any existing and future use case is a much more robust, scalable, and open solution, as proven in so many other software environments.
That is why Securitize has taken it a step further with the design of the DS Protocol. The DS Protocol considers the whole lifecycle of a Digital Security-enabling applications (DS Apps) to address relevant events associated with the ownership of tokenized economic rights. It considers not just the issuers but also investors and exchanges, and the relationships of trust that may be required among them. This is creating an ecosystem in which developers can expand the value that Digital Securities provide to stakeholders.
Securitize believes the Digital Securities ecosystem will be very diverse, due to the enormous size, varied nature and specific vertical requirements of the securities market. Securitize aims to enable this diversity by using a model that will facilitate the flexible development of specific implementations for certain elements, an ecosystem of Digital Securities Apps.