Securitize Surpasses $1 Billion in Tokenized Assets, Floats New Service

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As a seasoned crypto investor who’s witnessed the digital asset landscape evolve over the years, I can confidently say that Securitize’s achievement of $1 billion in tokenized onchain assets is a monumental step forward for the industry. Having started my journey with Bitcoin back in 2013 when it was just a few dollars per coin, seeing a traditional powerhouse like BlackRock embrace blockchain technology and crypto is nothing short of remarkable.

Securitize, a top player in asset tokenization, has achieved an impressive feat by exceeding $1 billion worth of tokenized digital assets. A major factor in reaching this milestone was the success of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). Remarkably, BUIDL had a higher amount of liquidity locked on-chain compared to other assets backed by Securitize. Additionally, various other assets supported by the company also played a role in this achievement.

Securitize Charting New Era in Tokenized Funds

Just three months ago, Securitize reached over half a billion dollars in July 2024, and they announced a new service around the same time that this significant milestone was achieved.

Previously mentioned, the upcoming business, Securitize Fund Services (SFS), is designed to make managing tokenized funds more straightforward. This simplification aims to smooth out the operational and compliance challenges associated with developing fresh blockchain-backed real-world asset solutions.

Carlos Domingo, the co-founder and CEO of Securitize, comments that reaching the billion-dollar milestone was not unexpected due to strong demand. According to Domingo, this has led to a swift escalation. Yet, Securitize underestimated the rapid pace at which they would ascend within such a short period.

As Securitize Fund Services expands, it will offer vital assistance to firms such as Hamilton Lane and BlackRock Inc (NYSE: BLK). Among the key tasks SFS will handle are establishing new crypto-focused investment funds. In addition, Securitize will strengthen tax services, financial reporting, record keeping, and regulatory compliance for these companies.

At its core, Securitization Fund Structure (SFS) aims to maintain smooth and effective functioning of an investment fund. As per Securitize’s CEO, there is already a queue of customers eager to take advantage of their services. Domingo highlighted that managing the fund administrator within the organization would lead to improved service quality.

Global Reach and Cross-Chain Integration with Wormhole

The collaboration between Securitize and BlackRock for the debut of a tokenized investment fund began in March 2024.

Based on information from Coinspeaker, the growth strategy of BlackRock suggests a calculated step by the asset management company. As per Larry Fink, BlackRock’s CEO, the development of additional tokenized assets and securities has the potential to revolutionize the financial sector.

Fink proposed that rather than putting money into gold as a protection against inflation, it would be more beneficial to invest in a global asset such as Bitcoin. Previously, before championing Bitcoin, the CEO of BlackRock had doubts about the digital currency. Nevertheless, the company now offers a Bitcoin ETF product and has taken over a significant portion of the market.

Currently, Domingo indicates that SFS is planning to offer its services worldwide. It seems that Securitize is well-prepared for this global expansion following its strategic alliance with Wormhole. In a recent development, the company has declared Wormhole as their official cross-chain partner for their tokenized assets.

Thanks to partnerships, Securitize’s tokenized assets can now be transferred seamlessly between various blockchain platforms. This opens up numerous possibilities for easier purchasing, trading, and managing digital assets. Additionally, the versatility provided increases liquidity for institutional investors as a whole.

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2024-10-31 20:51