Wormhole has been selected as the new official cross-chain partner of Securitize for its tokenized assets’ transactions.
Securitize, a blockchain company specializing in asset tokenization, has officially appointed Wormhole as its interoperability partner. This partnership will provide cross-chain capabilities to all tokenized assets on the Securitize platform.
In an announcement released on Friday, the company highlighted that the partnership will integrate Wormhole’s cross-chain capabilities into its system, describing the collaboration as a transformative step for asset issuers and investors.
Tokenized assets on Securitize’s platform will now have the ability to traverse multiple blockchain networks, as they were previously restricted to individual blockchains. This enhanced flexibility will increase liquidity, providing more opportunities for individuals interested in trading, purchasing, or managing these digital assets more effectively.
A Substantial Advance in Institutional Adoption
By integrating Wormhole’s state-of-the-art cross-chain technology with Securitize’s compliance expertise, the partnership is anticipated to increase institutional interest in tokenized assets. The move is anticipated to expand the accessibility, liquidity, and security of tokenized assets, thereby advancing the asset class into mainstream financial markets.
Securitize has also confirmed that it will integrate Wormhole’s messaging protocol with its smart contracts to satisfy the compliance requirements of institutional investors, thereby establishing a regulated environment for trading these tokenized assets.
The Wormhole partnership will enable Securitize’s current and future products to function across a variety of protocols, including both private and public blockchains.
“We are enabling the full potential of tokenized securities by integrating them into public, permissionless blockchains.” Wormhole facilitates the delivery of transactions that are both super-cheap and completed in under a second, thereby advancing us toward a fully cross-chain ecosystem. Carlos Domingo, CEO of Securitize, stated, “This is a significant advancement in demonstrating the potential of public blockchains to support novel and captivating applications.”
Convergence of Decentralized and Traditional Finance
Securitize has been at the forefront of the conversion of assets such as real estate and bonds into digital tokens since its establishment in 2017. The company is registered as a transfer agent with the United States Securities and Exchange Commission (SEC) to facilitate the transition between traditional finance and blockchain technology.
In May of this year, Securitize received $47 million in a strategic funding round that BlackRock led. ParaFi Capital, Tradeweb Markets, and Hamilton Lane were among the investors who participated in the round.
Securitize declared that the capital it had recently acquired would be allocated to expanding its global operations and promoting additional innovation.
BlackRock had already designated Securitize as the official transfer agent for its tokenized Ethereum-based fund prior to this. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is exclusively accessible through Securitize’s platform, as announced.