- Securitize plans to explore new blockchain opportunities and expand its licensing scope with fresh funding.
- Tokenization’s potential to democratize investment access and streamline fractional ownership remains a focal point.
BlackRock’s recent investment in Securitize marks a notable development in the realm of tokenization. The asset management giant’s injection of $47 million into Securitize, a key player in the tokenization domain, signifies a significant move within the financial sector.
Securitize is excited to announce that we have completed a $47 million funding round led by @BlackRock together with @hamilton_lane, @paraficapital, @Tradeweb, and strategic investors @AptosLabs, @circle and @Paxos.
This further proves that the demand for tokenized real-world… pic.twitter.com/sRuNgEslVj
— Securitize (@Securitize) May 1, 2024
Joining BlackRock in this funding endeavor are prominent entities such as Hamilton Lane, Tradeweb Markets, and ParaFi Capital. This collective investment underscores a growing interest in the potential of tokenization.
Joseph Chalom, in his capacity as the global leader of strategic ecosystem partnerships at BlackRock, is set to contribute his extensive expertise to the board of directors at Securitize. This move serves to deepen the partnership between these two entities, enhancing collaboration and synergy.
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One of BlackRock’s initiatives, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), operates on the Ethereum blockchain, offering US dollar yields through tokenization. BlackRock sees this move as part of a broader strategy to leverage tokenization’s potential in transforming capital markets infrastructure.
Securitize’s adherence to compliance standards has earned it the trust of major financial institutions, including BlackRock. Collaborating with BlackRock’s BUIDL fund, Securitize has facilitated the tokenization of private credit funds, totaling $375 million in investments.
With the recent infusion of capital, Securitize is poised to broaden its range of licenses and delve into tokenization prospects across emerging blockchains, including Aptos (ATP). Moreover, the firm is considering the acquisition of a specialized broker-dealer license from the Securities and Exchange Commission (SEC).
Instead of directly offering custody services, Securitize intends to partner with reputable providers such as Anchorage and BitGo.
During a recent interview with Fortune Magazine, CEO Carlos Domingo of Securitize outlined two main applications for tokenized assets. Firstly, tokenization can bring traditional finance products to Web3 investors, offering accessibility and efficiency.
Domingo emphasizes the efficiency of fractional ownership enabled by tokenization, which democratizes access to investments previously restricted by high minimum requirements.
Amid Bitcoin’s recent correction, with a 20% decrease from its all-time high in mid-March, the cryptocurrency market experiences fluctuations.
As Bitcoin currently trades at $57,000, investors navigate this volatile sector, seeking opportunities amidst market shifts.
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