Blockchain for Banking Capital markets

MUFG, Nomura-backed Securitize buys Japanese consultancy

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Today San Fransisco based startup Securitize announced it’s acquiring Japanese blockchain consultancy BUIDL. Many of Securitize’s backers are Japanese including Nomura, MUFG, SBI and telecoms giant KDDI. Securitize offers blockchain solutions using its platform for compliant digital securities. The firm is also a part of the recently announced Japanese Security Token Research Consortium.

BUIDL is a consultancy which started in 2018, and the announcement states the company is currently supporting several security token projects. Its website lists other blockchain consulting projects such as helping Japanese power company KEPCO with a blockchain solution for electric vehicle charging.

“By acquiring BUIDL, a proven security token leader and blockchain innovator in Japan, Securitize is immediately better positioned to help develop the institutional-grade security token industry in Japan, Asia and beyond,” said Carlos Domingo, Securitize CEO and Co-Founder.

Securitize already has a technology platform. But working with large enterprises either means working through consulting partners for implementation or providing consulting directly. Hence this seems to be a quick way for Securitize to get consulting boots on the ground to execute its shareholders’ projects, or an acqui-hire. We’ve asked how many staff BUIDL has, but the website implies six or seven people.

The two firms share a common shareholder in Global Brain. Additionally, the venture capital firm works with KDDI, another Securitize shareholder.

Meanwhile, BUIDL was founded by Jun Hasegawa who is also Chairman of OmiseGo a blockchain-based payments firm and protocol that runs as a sidechain of Ethereum. OmiseGo raised $25 million in a 2017 ICO and currently is a top 50 coin with a market capitalization of $104 million according to CoinMarketCap.

To date Securitize has raised more than $27 million including a $14 million round this year, followed by an investment by SBI where the amount was not disclosed. The value of the BUIDL deal was not revealed.

Pending approvals the transaction is expected to close at the end of this year.

Image Copyright: Yurich84 / BigStock Photo