Harbor, a tokenized security compliance platform and BitGo, the institutional-grade provider of bitcoin and cryptocurrency security, today announced a strategic partnership to integrate BitGo Business Wallets and BitGo Custody into the Harbor compliance platform for tokenizing traditional private securities, such as commercial real estate, investment funds, fine art, and more.
Through the integration with BitGo, Harbor will provision BitGo Business Wallets for investors and BitGo Custody for issuers, and BitGo will handle the custody of cryptocurrency funds during the fundraising process.
“The Harbor platform will help change the way traditional assets like commercial real estate are securitized. BitGo and Harbor share a commitment to transforming capital markets by creating ways for more people and institutions to participate. We have worked closely to create a seamless experience for issuers and investors, from the provisioning of digital wallets to the custody of funds.”
Harbor’s all-in-one platform allows issuers and broker dealers to bring tokenized private securities to market. The platform streamlines investor onboarding (KYC/AML, accreditation, international tax rules), signing of documents, funding, and a myriad of other tasks, making it faster, easier and more cost-effective to syndicate investments more widely among larger groups of investors.
The Harbor compliance protocol enforces the complex rules and regulations governing securities on issuance, and more importantly, on secondary transfers, wherever they occur. The Harbor solution helps maximize the potential for liquidity removing friction to trade and by ensuring automated compliance in transfers across multiple venues simultaneously.
“Tokenized private securities are the next big wave in capital markets, but roadblocks of complexity, security and compliance must be addressed for mainstream investors. Our partnership with BitGo is key to providing a great user experience on top of an industrial-grade platform that investors, issuers and regulators can trust. With BitGo’s expertise, we will help democratize access to premium private investments in a more liquid, digitized form that allows for value creation in ways that were impossible before. The transition from papered private securities to digitized forms using the blockchain will have a similar impact as the transition from snail mail to email had on written communication.”
Tokenization is the process of digitizing private securities that previously existed only on paper, using blockchain technology. The technology transition to digitized shares will enable new capabilities, but ownership rights remain the same as for traditional securities. For private securities, tokenization can bring efficiency, transparency and liquidity to a broad class of traditionally illiquid assets, where transactions, agreements, ownership transfers, and compliance are typically done manually.