Key Takeaways:
- Securitize Funding: Securitize raised $47 million in a strategic investment round led by BlackRock, with contributions from Aptos Labs, Paxos, and Circle, aimed at expanding product development, global reach, and partnerships.
- BlackRock’s Strategic Moves: Joseph Chalom of BlackRock joins Securitize’s board, reinforcing their digital assets strategy, which includes the launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain.
- Advancements in Tokenized Funds: The BUIDL fund, a collaboration between Securitize and BlackRock, quickly became the largest tokenized treasury fund with a market cap of $375 million and offers innovations like monthly token dividends and conversion to USD Coin (USDC).
Securitize, a digital securities platform, has successfully raised $47 million in a strategic investment round headed by BlackRock.
The funding round also saw participation from notable blockchain developers Aptos Labs and Paxos, as well as the stablecoin issuer Circle.
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.
— Securitize (@Securitize) May 1, 2024
This further proves that the demand for tokenized real-world… pic.twitter.com/sRuNgEslVj
The newly acquired funds are earmarked for product development, global expansion, and enhancing partnerships within the financial services ecosystem, according to a statement from Securitize.
Joseph Chalom, the global head of strategic ecosystem partnerships at BlackRock, is set to join the Securitize board of directors following the investment.
Chalom described the move as “another step in the evolution of our digital assets strategy […] that will help meet the future needs of our clients.”
BlackRock leads $47 million strategic funding round in tokenization firm Securitize https://t.co/PzaGIBApfu
— The Block (@TheBlock__) May 1, 2024
In a significant collaboration earlier this year, Securitize teamed up with BlackRock to serve as a transfer agent, tokenization platform, and placement agent for the March launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain.
This fund, which invests in cash, U.S. Treasury bills, and repurchase agreements, marks BlackRock’s first venture into tokenized funds.
BUIDL allows dividends accrued daily to be paid through monthly token deposits, with each token maintaining a stable value of $1. Additionally, BUIDL holders have the option to convert their shares into USD Coin (USDC) through Circle.
Since its inception, BUIDL has swiftly grown to a market cap of $375 million, making it the largest tokenized treasury fund, surpassing the Franklin OnChain U.S. Government Money Fund by $7 million.
Currently, the total value locked in tokenized U.S. treasuries and bonds stands at $1.28 billion, per data from RWA.xyz.
Among other investors in the funding round were investment manager Hamilton Lane, ParaFi Capital, and Tradeweb Markets.
Real-world asset (RWA) tokenization firm @Securitize has closed a $47 million funding round led by the world's largest asset manager @BlackRock.
— ICO Drops (@ICODrops) May 1, 2024
The round also included investments from Hamilton Lane (HLNE), @paraficapital and Tradeweb Markets (TW).
BlackRock and Securitize… pic.twitter.com/duJhtcMyu8
Securitize is officially registered with the SEC as a broker-dealer and transfer agent and is a member of the FINRA self-regulatory organization.
Additionally, the firm is gearing up to start trading tokenized assets in Spain this September.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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