Securitize announces $47 Million Strategic Funding Round led by BlackRock

Rhea-AI Summary

Securitize, a leader in tokenizing real-world assets, secured a $47 million funding round led by BlackRock, with participation from Hamilton Lane, ParaFi Capital, and Tradeweb Markets. The investment highlights Securitize's efforts in digitizing capital markets with blockchain technology, fueling innovation and expansion. BlackRock appointed a board member, emphasizing the potential of blockchain technology in reshaping finance. The funding coincided with the launch of BlackRock's tokenized fund on Ethereum, reinforcing the partnership.

Positive

• Securitize's successful completion of a $47 million funding round led by BlackRock demonstrates investor confidence in the company's pioneering efforts in digitizing capital markets with blockchain technology.

• The investment will fuel Securitize's continued innovation and expansion, solidifying its position as a leader in the digital asset securities ecosystem.

• BlackRock's appointment of a board member indicates their commitment to supporting Securitize's mission and highlights the transformative potential of blockchain technology in capital markets infrastructure.

• The launch of BlackRock's tokenized fund on Ethereum, in partnership with Securitize, further cements the collaboration between the two companies and underscores the potential for growth in the digital asset securities sector.

Negative

• None.

Insights

Financial Analyst

Securitize's recent $47 million funding round, prominently backed by heavyweights such as BlackRock, signals an emerging confidence in the maturation of blockchain technology's role within financial markets. The capital infusion is earmarked for product development and global expansion, which could potentially enhance liquidity and streamline operations in markets currently characterized by more traditional and less efficient processes. The entry of established firms like BlackRock in the tokenized fund space could indicate a shift towards broader institutional acceptance. This, coupled with Securitize's role as a transfer agent, may lead to increased adoption of blockchain technologies in the investment community, likely resulting in a need for modernized regulatory frameworks to accommodate this new asset class. Investors should monitor the interplay between innovation and regulation in this sector closely.

Tech Industry Analyst

The technological implications of Securitize's funding round are considerable. By tokenizing real-world assets, Securitize is at the vanguard of leveraging blockchain technology to improve transparency and transactional efficiency. Tokenization can provide immutable records and instant settlements, advantages that could disrupt traditional capital market operations. The backing by BlackRock and other strategic investors, particularly in the context of BlackRock's new Ethereum-based tokenized fund, speaks to a growing trend of legacy financial institutions seeking to harness blockchain's potential. This convergence of traditional finance and blockchain may accelerate the development of new fintech products, potentially leading to increased scalability and reduced barriers to entry for investors.

Market Research Analyst

The strategic investment from top-tier financial institutions in Securitize indicates a pivotal sentiment shift towards the tokenization of assets. This move reflects an acknowledgement of a growing demand for digital asset securities, suggesting that market participants are seeking more innovative investment vehicles. As Securitize expands, the potential democratization of access to private markets through blockchain could reshape investor portfolios, diversifying opportunities beyond public equities and bonds. However, as traditional firms navigate this new terrain, there will be an array of challenges including cybersecurity concerns and the technological learning curve that could temper market enthusiasm. Retail investors should consider the evolving landscape while assessing the risks and opportunities associated with digital asset securities.

The investment coincides with BlackRock's selection of Securitize as the transfer agent of its first tokenized fund on a public blockchain.

MIAMI, May 1, 2024 /PRNewswire/ -- Securitize, the leader in tokenizing real-world assets, today announced the successful completion of a $47 million funding round led by BlackRock (Nasdaq: BLK). The strategic investment also includes funding from Hamilton Lane (Nasdaq: HLNE), ParaFi Capital, and Tradeweb Markets (Nasdaq: TW).

This investment underscores Securitize's industry pioneering efforts in digitizing capital markets with blockchain technology. The contributed capital will fuel Securitize's continued innovation and expansion as it further solidifies its position as a leader in the digital asset securities ecosystem.

As part of the investment, Joseph Chalom, BlackRock's Global Head of Strategic Ecosystem Partnerships, has been appointed to Securitize's Board of Directors.

"We are thrilled to have the support of such distinguished investors as we continue to drive the digitization of capital markets through tokenization," said Securitize Co-Founder and CEO Carlos Domingo. "In our view, the transformative potential of blockchain technology to reshape the future of finance in general – and tokenization in particular – is promising."

"At BlackRock, we believe that tokenization has the potential to drive a significant transformation in capital markets infrastructure. Our investment in Securitize is another step in the evolution of our digital assets strategy," said Joseph Chalom. "We are pleased to lead this investment round alongside other participants and help foster innovation that will help meet the future needs of our clients."

Juan Delgado, Hamilton Lane Co-CEO, commented: "Hamilton Lane has a deep history with Securitize, having partnered initially in 2022 and since then enabling access to our Senior Credit Opportunities Fund (SCOPE) as well as our Equity Opportunities Fund V. We are committed to making the private markets accessible to a broader set of investors, including through digital first, token-based technology. Securitize continues to be a leader in this space and we are thrilled with this investment and excited to continue our collaboration."

"Securitize has built cutting edge infrastructure that enables traditional assets to move onto the high speed, modern rails of blockchains -- enabling greater transparency, immediate settlement, reduced counterparty risk, and heightened programmability," said Ben Forman, Founder and Managing Partner of ParaFi.  "At ParaFi, we've invested broadly across digital asset and tokenization infrastructure and are thrilled to partner with Carlos and the Securitize team to enable this vision of the future."

"Tokenization has the potential to drive greater efficiency and accessibility across financial markets," said Tradeweb Chief Product Officer Chris Bruner. "Securitize's expertise in digital asset securities aligns nicely with Tradeweb's focus on delivering cutting-edge technology that strengthens market infrastructure for our clients."

Other strategic investors in the round include Aptos Labs, Circle and Paxos. Securitize will leverage the proceeds of the funding round to accelerate product development, expand its global footprint, and further strengthen its partnerships across the financial services ecosystem.

The funding round coincides with the launch of BlackRock's first tokenized fund issued on Ethereum, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), available to investors by subscribing to the fund with Securitize.

BUIDL seeks to offer a stable value of $1 per token and pays daily accrued dividends directly to investors' wallets as new tokens each month. The Fund invests 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain. Investors can transfer their tokens 24/7/365 to other pre-approved investors. Through Circle, BUIDL holders can transfer their shares to Circle for USDC through its smart contract functionality.  Fund participants will also have flexible custody options allowing them to choose how to hold their tokens.

About Securitize
Securitize, the leader in tokenizing real world assets, is driving the compliant digitization of financial assets through next generation blockchain technology. Securitize, or through its subsidiaries, is a registered broker dealer (member SIPC) and operates a primary marketplace, an alternative trading system as well as a top 10 transfer agent and has an exempt reporting adviser. Learn more at http://www.securitize.io.

About Hamilton Lane
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs nearly 700 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has approximately $903 billion in assets under management and supervision, composed of $120 billion in discretionary assets and nearly $783 billion in non-discretionary assets, as of December 31, 2023. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on LinkedIn.

About ParaFi
ParaFi Capital is a leading alternative asset management firm that operates hedge fund and venture capital strategies focused on the digital asset ecosystem. Founded in 2018, ParaFi was among the earliest investors in the blockchain industry and has evolved into a trusted partner by leading institutions globally. ParaFi's investment and technology team pursues idiosyncratic opportunities across venture, liquid, and quantitative strategies with a focus on bridging traditional capital markets and blockchain technology. As a firm, ParaFi is committed to a culture of rigorous research, technical development, and institutional underwriting to enable exceptional results for our partners and portfolio companies.  Learn more at www.parafi.com.

About Tradeweb
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.5 trillion in notional value traded per day over the past four quarters. For more information, please go to www.tradeweb.com.

Securitize Disclosures

Securities are offered through Securitize Markets, LLC, ("Securitize Markets") a registered broker-dealer and member FINRA/SIPC. Securitize Markets, LLC, and Securitize Capital, an Exempt Reporting Adviser, are not involved in Real-World Asset (RWA) tokenization, a service provided by Securitize.

Assets such as digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal.

Securitize, Inc. (Securitize) is a Delaware corporation. Securitize is a technology provider which, together with its affiliates, maintains an end-to-end web-based platform used by issuers for issuing securities, specifically including digital asset securities. Securitize is not a registered broker-dealer.

Securitize, LLC is a transfer agent registered with the U.S. Securities and Exchange Commission.

Securitize Markets also operates Securitize Markets ATS, an alternative trading system.

Securitize Capital, LLC is an exempt reporting adviser filed with the State of Florida.

Media Contact:
press@securitize.io 

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SOURCE Securitize