Securitize delivers trusted global solutions for creating compliant digital securities and as such provides companies, funds, and institutions with a more cost-effective, efficient, and compliant way to issue and track regulated securities while improving investor relations. At Securitize, we are constantly working to better the relationship between investors and issuers by leveraging the inherent advantages of digital securities.
Digital securities are natively digital and therefore fundamentally better by almost all measures when compared to traditional securities. One such advantage is how easy and inexpensive it is to compliantly transfer and trade digital securities with near-instant settlement.
Dealing with custody and wallets, however, is not so easy. This is one area where we believe there is still a lot of friction for investors who have never had the experience of holding a digital asset, and we are constantly working to make the experience better for all investors in digital securities.
In order to manage your digital securities, you need a wallet, which is basically known in the financial world as an investment account. In the same way that you hold shares in your investment account, your wallet holds your digital securities (also known as tokens).
Wallets can be hardware-based (a physical device like a Ledger) or software-based (like a Coinbase wallet). For this post, we are talking only about software-based wallets.
Now that you know what a wallet is, how do you get one?
Securitize has enabled new methods for registering wallets within our Investor Dashboard by integrating the services of two of the most reliable players in the sector: Metamask and Coinbase Wallet.
Let’s say you want to buy tokens in a real estate opportunity (in this case, your tokens would represent partial ownership in the property associated with that offering). You have already funded your investment but you want to register a wallet where you will keep the tokens you are entitled to. Within our platform, you can access the ‘Tokens and Payouts’ tab and choose the most convenient way to do so.
We talked about how to register a wallet sending some Ether with Coinbase Wallet in the past. However, since using that method incurs costs, we bring today two free ways of registering wallets: one with a browser extension and another with a mobile app, which I will now explain respectively:
Option 1 — Register your Wallet using Metamask
Metamask is a browser extension that enables the web to communicate with the Ethereum blockchain, creating wallets in which you can store your tokens and exercise your rights as an asset holder (More on your rights below).
- First, download the Metamask extension in any of the browsers it is readily available for: Chrome, Firefox, Opera and Brave. You can do this going into their website.
- A Metamask icon in the form of a fox will appear in the top right corner of your browser. Click it to access its functionality.
- Next, click on Create New Vault and set a strong password.
- You will be shown your twelve seed phrases. Write these down and keep them somewhere safe, they will be your back up in case you forget your password. Since there is no email account associated, you cannot recover the password in the way we are used to for other digital services.
- When you’ve done this, click on ‘I’ve copied it somewhere safe’.
This process would be outlined by the following screens:
Now that the wallet has been created, you can register it within our platform:
1.Go to the ‘Tokens and Payouts’ tab, then click the ‘register wallet’ button.
2. Select ‘Register a wallet with Metamask’. This will activate the extension we previously installed.
3. Sign the transaction. Again, ‘sign’ is crypto-jargon whereby you confirm that you agree to register your wallet.
4. Voilà! You have registered your wallet. Easy right?
Option 2 — Register your Wallet using Coinbase Wallet
For those of you who would like to keep investments more close-by, we bring to you a second option which comes not in the form of a browser extension, but an app that can be downloaded into your phone (Android or iOS), under the name Coinbase Wallet (do not confuse with Coinbase, which is the digital currency exchange.) In this case, instead of having your tokens stored in the browser, they would be saved in your mobile device.
The steps to follow are:
- Start by installing Wallet for iOS or Android.
- Follow the easy instructions to set up your wallet.
- Navigate to the browse tab and enter the Securitize website address. This in-app browser works similarly to the way that Metamask connects your regular browser with Ethereum. Both systems are tokenized networks called web3.
- A pop-up will appear enabling you to register your wallet to the system easily.
Again, I depict the real experience below:
What if I already have a wallet somewhere else? Can I switch from my existing wallet app like Metamask or MyEtherWallet to Coinbase Wallet?
Yes, you can. Every wallet uses a private key to secure its assets which you can import into Coinbase Wallet. Just look for the 12-word recovery phrase or mnemonic in the settings menu of your current wallet and then use that same 12-word phrase to sign into Coinbase Wallet.
Wallet registration status
One last consideration to take into account is that when your wallet is registered you must wait for it to be in the ‘ready’ state. Please beware that in order for the registration to be ‘ready’, we must associate the wallet to a user identity. Attaching a verified identity to the wallet ensures compliance with legal regulations. Therefore, to have a ready wallet you must have provided the required information for KYC and AML purposes.
Now you can enjoy the intoxicating power of having a registered wallet within our platform and, as I mentioned before, you will be able to exercise the rights that you are entitled to as an asset holder. I will outline them briefly, and no doubt post about them in the future. As we talked about having invested in a real estate opportunity, one of your rights might be receiving your due proportion of rent in the form of dividends, without paying a commission on the transaction. Another benefit may be voting to decide upon future strategies for those buildings and much more. That is all folks, I hope you enjoyed the post and will join us in this exciting and digitized world.