Securitize, the security token issuance platform, garnered a significant achievement for the whole security token ecosystem this week. The business successfully made the very first investment in a security token offering (STO) from an individual retirement account (IRA) possible. The news indicates more security token adoption by mainstream investment companies and the willingness of more investors to engage in this growing finance market.
Discussing the crucial achievement, Carlos Domingo, co-founder and CEO of Securitize, explained the general enthusiasm around the project. He spoke of the importance of promoting direct IRA participation in the opening up of the economy. Domingo explained how the latest approach allows millions of investors direct access to new resources connected to the Securitize platform. He also took a moment to address what technologies meant for other emerging digital securities issuers.
In order to make this innovative idea a reality, Securitize has formed a strategic alliance with the alternative investment company – AltoIRA. The organization explicitly implements the Securitize DS Protocol with the intention of automating the whole operation. Through this way, interested people will potentially invest their IRA savings through virtual assets such as security tokens. For contrast, the current program is much more cost-effective than the conventional IRA investing strategies.
Discussing the strategy, Eric Satz, CEO of AltoIRA, explained how “thrilled” his company was to be part of the first direct investment in digital shares with the IRA. He believes that integrations will give investors a fully diversified portfolio. Finally, he commented on the restricted market access of security tokens seen to date. Currently, only about 2% of all alternative investments are kept within retirement accounts, such as IRAs and 401k.
Part of the explanation for the lack of consumer growth is that conventional custodians lack the technical resources to compete in these emerging markets. AltoIRA customers can also have access to private equity, investment capital and real estate. Moreover, these people can now also invest directly in cryptocurrencies from their retirement accounts.
AltoIRA, for its part, has opted to allow creditors access to the CityBlock Capital fund. The CityBlock Capital investment capital group is best known for its flagship private fund. The fund focuses on blockchain projects with the ultimate goal of promoting access to tokenized finance and digital asset trading.
Robert Nance, Managing Partner at CityBlock Capital, explained that they had opted to use the Securitize program over the rivals. He added that Securitize is a leading supplier of technologies in the industry. He also talked of the potential to access untapped resources through the use of blockchain technologies.
Securitize The Future
Securitize continues to extend the reach of the whole blockchain market. You should expect this new initiative to accelerate the acceptance of security tokens in a big way. IRA participants now have new ways to compete in the dawning era of economy as it grows.