Lead investor WisdomTree eyes ETFs with Securrency blockchain tech

Securrency plans to use $17.65 million in funding to advance its software and platform development, integrate with key strategic partners and other customers, and build out its operational structure

Securrency has raised $17.65 million in funding from investors including WisdomTree Investments, which believes the fintech’s blockchain-based market infrastructure technology has applications in exchange-traded fund (ETF) investing.

Washington DC-, New York- and United Arab Emirates-based Securrency plans to use the funding to advance its software and platform development, integrate with key strategic partners and other customers, and build out its operational structure.

Other strategic and venture investors that participated in the funding round include Abu Dhabi Investment Office, RRE Ventures, Strawberry Creek Ventures, Panthera Capital and Monex Group.

Securrency’s blockchain-based financial markets infrastructure technology is centred on its identity and compliance framework to support global digital securities transactions.

The Compliance Aware Token framework provides multi-jurisdictional compliance and convenience to financial services providers and market participants to facilitate the issuance, trading and servicing of digital securities and other digital assets. As a result, its technology is blockchain-agnostic and its compliance and policy-enforcement tools support ledger-to-ledger transactions across multiple blockchains.

Dan Doney, chief executive officer of Securrency, explained: “Securrency recognised early on that global liquidity for digital securities will result from validated identity and multi-jurisdictional compliance, and that a convenient framework for universal interoperability would unlock the power of blockchain technology in the financial markets.”

“We have been building over the past several years a unique framework that is not restricted to one blockchain or platform in order to allow for the remarkable innovations across this space to come together in a way that encourages the major institutions, market makers and other market players to swiftly and confidently transition into this new technological paradigm.”

For its funding round, Securrency focused on leaders in the financial markets, particularly global issuers of highly-liquid securities and proven market innovators. “WisdomTree has a well-deserved reputation as an innovator within financial services, and we are thrilled to have them as our lead investor,” Doney continued.

“WisdomTree has truly exciting applications for our technology. Our partnership with WisdomTree will allow us to demonstrate unique features of our technology, specifically our Compliance Aware Token framework and multi-ledger capabilities.”

Jonathan Steinberg, founder and chief executive officer of WisdomTree, said of its preparations for and plans following the funding round: “Our investment in Securrency is the result of a multi-year review of blockchain technology and the associated landscape. In our review, we found instances of unnecessary applications of the technology and poor compliance with existing regulations; however, there are numerous elements of blockchain technology that, when correctly applied, will bring benefits to investors.”

“Using the technology, we believe we have identified areas for exciting innovation within the ETF ecosystem and in financial services more broadly, all with a focus on meeting the highest standards of regulation.”

Steinberg continued: “Securrency’s leadership team has a unique combination of U.S. national security experience, technical expertise and financial services knowledge. We are confident that these attributes, together with its focus on compliance, will empower Securrency to be the leading technology firm in the disruption of financial services infrastructure through the industry’s adoption of blockchain technology.”

“Identity, security and compliance will be critical features in the evolution of financial services. Our collaboration will demonstrate these features, and we are excited to pursue this endeavor with Securrency.”

Image: Shutterstock

Mark Dugdale