On April 22, Securitize introduced a powerful new feature known as Instant Access. The digital securities platform backed by leading crypto exchange Coinbase said the new tool ensures compliance of secondary market transactions of digital securities with regulations.

As explained in the blog post, Instant Access helps in streamlining the development of compliant peer-to-peer transactions by investors in private securities. The new tool utilizes smart contracts on the Ethereum blockchain towards ensuring that transactions are carried out according to appropriate requirements.

When investors need to carry out a transaction, they use a web link to indicate their interest in selling their digital securities. They can post and share the web link across a variety of channels. As explained in the announcement, buyers need to have KYC/AML approval and register with an issuer to purchase digital security. The holder needs to share the transaction link with the buyer to sell the digital security.

All transactions must meet these KYC/AML requirements and abide by any applicable transfer restrictions imposed by the issuer via the DS Protocol for permission. The blog post also added the following:

“There are no fees associated with using Instant Access to create or accept transfers. The only costs come from processing the transaction on the Ethereum blockchain. These costs (known as “gas costs”) are unrelated to the value of the securities being transferred. Neither Securitize nor any other party will be paid fees for these transactions.”

At the moment, the platform is providing instant trading of private securities linked to five firms, which includes venture capital funds, says its co-founder and CEO Carlos Domingo.

Last month, the firm and LIFULL announced their collaboration towards the creation of a funding platform using digital securities for investment in real estate. In August 2019, the U.S. SEC registered Securitize as a transfer agent, thereby allowing the firm to work as an official records keeper of changes of ownership in securities.