Securitize Achieves Regulatory Approval in the EU
Securitize, a prominent player in the tokenization sector, has obtained comprehensive regulatory approval to operate as both an Investment Firm and a Trading & Settlement System (TSS) within the European Union. This advancement marks a significant milestone for the company, which aims to leverage Avalanche’s blockchain to create a modern on-chain market infrastructure.
Streamlined Pathway for Issuers and Investors
In a release shared with Bitcoin.com News, Securitize emphasized that it has become the sole entity licensed to provide regulated digital-securities platforms in both the U.S. and EU, thereby enabling a streamlined pathway for issuers and investors engaging with two of the largest financial markets globally.
Launch of European TSS on Avalanche Network
The organization plans to launch its European TSS on the Avalanche network. By utilizing the platform’s swift transaction finality and specialized architecture, Securitize will support regulated trading and settlement processes. The newly authorized TSS will integrate functionalities typical of both a Multilateral Trading Facility and a Central Securities Depository, thereby consolidating operations that are usually split among various institutions.
Enhancing Connectivity Between Issuers and Investors
According to Carlos Domingo, co-founder and CEO of Securitize, this dual approval is pivotal as it enhances connectivity between issuers and investors, indicating a significant evolution in the way global markets have traditionally been segmented by regulatory frameworks.
Domingo mentioned that this TSS accreditation completes the crucial regulatory framework necessary for synchronizing the U.S. and EU operations.
Avalanche’s Technological Reliability
John Wu, President of Ava Labs, highlighted that the innovative design of Avalanche is intended to assure consistent performance and labeled the partnership a landmark achievement in showcasing how regulated tokenized markets can achieve enhanced efficiency.
This initiative is notable as it represents the inaugural cross-regional TSS developed on Avalanche. The approval involved collaboration with prominent European regulatory bodies, including the Comisión Nacional del Mercado de Valores (CNMV), the European Securities and Markets Authority (ESMA), the Bank of Spain, and the European Central Bank.
Operational Licenses and Future Plans
Securitize’s permission to operate as an investment firm originated in Spain in December 2024, and it has since been extended, or ‘passportable,’ across key EU markets like Germany, France, Italy, Luxembourg, and the Netherlands. These licenses authorize Securitize to undertake various operations, including the reception and forwarding of orders, execution, custodial services, transfer agent activities, and the management of market infrastructure systems.
Additionally, Spain’s ERIR license grants Securitize the capacity to fully oversee the lifecycle of tokenized assets—from the initial issuance through various lifecycle events—by integrating traditional transfer-agent functions within the digital asset sphere. The company anticipates its first tokenized asset issuance under the EU TSS to debut on Avalanche in early 2026, signaling what Securitize believes will establish a coordinated and regulated market across borders.
