Simetria announced on Wednesday that the Israel Securities Authority (ISA) has accepted a request for a preliminary ruling by the firm, allowing it to launch a digital securities offering platform in the country.
The Israeli company is now planning to launch the platform in May 2021, which will be the first digital securities platform in Israel. It will allow private companies to tokenize their securities and allow Israeli and global accredited investors to invest in them.
“ISA’s decision is a dramatic milestone towards the establishment of a digital securities exchange in Israel,” said Ziv Keinan, Simetria’s Founder and CEO. “Private companies will soon be able to list digital securities for trade on Simetria’s platform to gain liquidity and raise capital.”
The trend of securities tokenization is heating up around the world. Many countries have approved platforms to tokenize securities as the usage of blockchain can make the existing market structure more efficient.
“ISA’s decision, published today, brings Israel to the forefront of technology and innovation alongside other countries who already endorse digital securities platforms,” Keinan added.
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“This decision will enhance the liquidity of assets for shareholders, founders and employees of private companies, including Israel’s fast-growing tech industry,” Simetria’s Chairman, Ami Ben David said. He is also optimistic that this will open up share purchase opportunities for Israeli and global financial institutions that are interested in investing in the growth opportunities offered by Israeli startups.
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Backed by Draper Goren Holm, the Israeli company is now seeking a permit that would allow it to settle digital securities using distributed ledger technology (DLT).
Though Simetria’s services will be first launched in Israel within the country’s startup ecosystem, the company has plans to expand its services globally.
“Today marks a monumental win for not only Simetria but for Israel and the global financial system as a whole,” Alon Goren, Founding Partner at Draper Goren Holm, said. “With the nation already being a leading tech behemoth, it is exciting to see their financial regulators leading the global charge toward a world where all shares will be digitized.”