Securitize reveals $47 million Strategic Funding Round led by BlackRock. The investment aligns with BlackRock’s decision to appoint Securitize as the transfer agent for its inaugural tokenized fund on a public blockchain. Securitize, renowned for its expertise in tokenizing real-world assets, announced today the successful closure of a $47 million funding round spearheaded by BlackRock (Nasdaq: BLK). The strategic investment also includes contributions from Hamilton Lane (Nasdaq: HLNE), ParaFi Capital, and Tradeweb Markets (Nasdaq: TW).
Securitize is a pioneering force in the tokenization of real-world assets, driving the compliant digitization of financial assets through cutting-edge blockchain technology. As a registered broker-dealer (member SIPC), Securitize and its subsidiaries operate a primary marketplace, an alternative trading system, and hold a position among the top 10 transfer agents. Additionally, the company serves as an exempt reporting adviser.
This investment underscores Securitize’s pioneering role in digitizing capital markets using blockchain technology. The injected capital will propel Securitize’s ongoing innovation and expansion, solidifying its leadership position within the digital asset securities ecosystem.
As part of the investment deal, Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, assumes a position on Securitize’s Board of Directors.
Securitize Co-Founder and CEO Carlos Domingo expressed excitement about the backing from esteemed investors, emphasizing their commitment to advancing capital markets digitization through tokenization. He highlighted blockchain’s transformative potential to revolutionize finance, particularly in the realm of tokenization.
Joseph Chalom of BlackRock expressed the belief that tokenization could bring about a substantial transformation in capital markets infrastructure. He noted that their investment in Securitize represents a further development in their digital assets strategy. Chalom expressed satisfaction in leading the investment round and contributing to fostering innovation to address the evolving needs of their clients.
Juan Delgado, Co-CEO of Hamilton Lane, highlighted the firm’s longstanding relationship with Securitize, which began with their partnership in 2022. Since then, they have facilitated access to their Senior Credit Opportunities Fund (SCOPE) and Equity Opportunities Fund V. Delgado emphasized their commitment to making private markets more accessible to a wider range of investors, including through digital-first, token-based technology. He expressed excitement about the investment in Securitize and their ongoing collaboration.
Ben Forman, Founder and Managing Partner of ParaFi, praised Securitize for developing advanced infrastructure that facilitates the migration of traditional assets to blockchain networks. He emphasized the benefits of this infrastructure, including greater transparency, immediate settlement, reduced counterparty risk, and enhanced programmability. Forman expressed excitement about partnering with Carlos and the Securitize team to realize this vision of the future, highlighting ParaFi’s broad investments in digital asset and tokenization infrastructure.
Tradeweb Chief Product Officer Chris Bruner highlighted the potential of tokenization to enhance efficiency and accessibility in financial markets. He noted that Securitize’s proficiency in digital asset securities complements Tradeweb’s commitment to providing state-of-the-art technology that reinforces market infrastructure for their clients.
Other strategic investors in the round include Aptos Labs, Circle, and Paxos. Securitize will utilize the proceeds from the funding round to accelerate product development, expand its global presence, and bolster its collaborations across the financial services ecosystem.
The funding round coincides with the launch of BlackRock’s maiden tokenized fund issued on Ethereum, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), accessible to investors through subscription with Securitize.
BUIDL aims to maintain a stable value of $1 per token and distributes daily accrued dividends directly to investors’ wallets in the form of new tokens each month. The Fund allocates 100% of its total assets to cash, U.S. Treasury bills, and repurchase agreements, enabling investors to earn yield while holding the token on the blockchain. Participants can transfer their tokens to other pre-approved investors round the clock, year-round. Through Circle, BUIDL holders can swap their shares for USDC via its smart contract functionality. Fund participants also enjoy flexible custody options, allowing them to choose their preferred method of token storage.
