Morgan Stanley Co-Leads $48M Funding Round In Coinbase-Backed Securitize

What Happened: Morgan Stanley MS has made its first investment in the blockchain industry, co-leading a $48 million investment round in digital asset securities firm Securitize, Inc.

Blockchain Capital, Securitize’s largest investor, also co-led the round along with Morgan Stanley’s investment fund Morgan Stanley Tactical Value.

According to a press release, Securitize’s Series B funding round was oversubscribed, raising a total of $48 million from new and existing investors.

New investors included Ava Labs, IDC Ventures, Migration Capital, NTT Data, and Japan-based Sumitomo Mitsui Trust Bank, representing major institutional interest from North America, Europe, and the Asia-Pacific region.

Meanwhile, existing investors like Blockchain Ventures, Borderless Capital, Global Brain, Mouro Capital, Ripio, Ripple Labs, and SPiCE VC joined the round to increase their investment in the firm.

Why It Matters: Participants in the round will reportedly receive their shares in the form of digital asset securities issued by Securitize's platform.

"Our first investment in the blockchain industry is the leading digital asset securities firm, Securitize. Securitize is well-recognized for pioneering the securitization of digital asset securities on the blockchain, and for its fully-compliant and fully-digital end-to-end solution that enables private companies to raise capital, and for investors to find a path to liquidity," said Pedro Teixeira, Co-Head of Morgan Stanley Tactical Value Investing. 

Read also: Morgan Stanley Adds Another Bitcoin-Focused Fund From NYDIG And FS Investments

"We make long-term investments in businesses and asset classes that are ahead of the curve. Our investment in Securitize is a sign that we believe in the growth and adoption of digital asset securities."

Teixeira will join Securitize’s Board of Directors along with Blockchain Capital co-founder and Managing Partner Brad Stephens.

The raise also comes before the launch of Securitize Markets, a marketplace to facilitate the trading of digital asset securities, providing a path to liquidity for the private capital markets.