Securitize Hits $1B Assets, Launches New Service

It has been confirmed that Securitize’s Assets Under Management have surpassed the one billion dollar threshold.

By surpassing $1 billion in tokenized onchain assets, Securitize, a prominent asset tokenization firm, has achieved a significant milestone. The success of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) was a substantial factor in Securitize surpassing the billion-dollar threshold. It is important to note that BUIDL had more onchain liquidity locked in, and other assets that the startup supported also contributed.

Securitize is pioneering a new era in tokenized funds

This accomplishment was achieved in July 2024, three months after Securitize exceeded the half-billion-dollar threshold. This milestone was concurrently marked by the company’s introduction of a new service.

As previously disclosed, the administration of tokenized funds will be simplified by this new venture, Securitize Fund Services (SFS). This will facilitate the automation of operational and compliance tasks associated with developing new real-world asset products based on blockchain technology.

Carlos Domingo, the CEO and co-founder of Securitize, asserts that the company’s achievement of the billion-dollar milestone is an expected development. The rapid increase results from Domingo’s conviction that the public desires it. Nevertheless, Securitize could have anticipated the fast ascent in such a brief period.

As it expands, Securitize Fund Services will offer essential services to Hamilton Lane and BlackRock Inc (NYSE: BLK), an American investment management firm. Establishing new crypto-based funds is one of the most critical services SFS will provide. In addition, Securitize will contribute to improving financial reporting, record keeping, and tax services. Additionally, it will facilitate regulatory compliance for these organizations.

The primary objective of SFS is to guarantee the smooth operation of a fund. As per the CEO, customers have already assembled to capitalize on Securitize’s offerings. Domingo emphasized that the in-house consolidation of the fund administrator would guarantee superior service delivery.

Wormhole’s Cross-Chain Integration and Global Reach

In March 2024, Securitize and BlackRock initiated a partnership to establish a tokenized investment fund.

As reported, BlackRock’s expansion was a strategic move for the asset manager. Larry Fink, BlackRock’s CEO, stated that creating additional tokenized assets and securities could revolutionize the financial industry.

Fink maintained that investing in an international asset such as Bitcoin rather than gold as a hedge against inflation would be more advantageous. The CEO of BlackRock was initially skeptical of Bitcoin before he became a staunch supporter of the digital currency. Nevertheless, the organization has achieved market dominance by introducing a spot Bitcoin ETF product.

In the interim, Domingo has stated that SFS will expand its services to a global scale. Securitize’s recent strategic partnership with Wormhole suggests it is prepared for this international reach. Wormhole was recently designated as the official cross-chain partner for the company’s tokenized assets.

With the collaboration, tokenized assets on Securitize can now traverse multiple blockchain networks. This presents substantial opportunities for the more efficient acquisition, trading, or management of digital assets. It also improves liquidity for institutional players in general due to its flexibility.