With more than $10 trillion under management, asset management firm BlackRock led a $47 million investment in Securitize, a major player in the sector. tokenization space.
BlackRock investment increases in tokenization
As announcement Notable participants in the funding round on Wednesday include investment firm Hamilton Lane, fintech firm Tradeweb Markets and asset manager ParaFi Capital.
As part of this investment, Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, will join the Securitize Board of Directors.
BUIDL is the BlackRock USD Institutional Digital Liquidity Fund, a tokenized fund created by BlackRock that operates on the Ethereum Blockchain to offer US dollar returns through tokenization.
BlackRock strongly believes that tokenization has the potential to revolutionize capital markets infrastructure, as stated by Joseph Chalom.
According to the announcement, BlackRock’s investment in Securitize represented a new step in its digital assets strategy, demonstrating its confidence in the growth and potential of the tokenization sector.
Through its compliance approach, Securitize has earned the trust and business of major financial firms, including BlackRock, Hamilton Lane and KKR.
The company collaborated with BlackRock’s BUIDL fund, which now has $375 million in investments, to issue tokenized private tokens. credit fund. Securitize has also launched an Alternative Trading System (ATS) which enables regulated trading of various securities.
Securitize explores new blockchains
With this new investment, Securitize aims to expand the reach of its existing licenses and explore the possibility of launching tokens on new blockchainslike Aptos (ATP).
While holding a broker-dealer license with the Financial Industry Regulatory Authority (FINRA), Securitize plans to obtain a special purpose broker-dealer license from the Securities and Exchange Commission (SEC).
However, rather than offering custody services, Securitize intends to work with established providers like Anchorage and BitGo.
In a interview With Fortune Magazine, Carlos Domingo, CEO of Securitize, envisions two main use cases for tokenized assets. The first is to offer traditional (Web2) financial products, such as money market funds, to Web3 investors.
The second is to introduce Web3 products to traditional financial investors (Web2). The tokenization of private credit funds, which deliver higher returns that Money market funds illustrate this potential, as they reduce costs and open fractional ownership to a wider range of investors.
Domingo highlights that tokenization enables efficient fractional ownership and democratizes access to investments previously restricted due to high minimum requirements. The CEO of Securitise concluded:
Tokenization, by allowing this very efficient fractional ownership, and with all this multitude of investors and securities in an efficient way, paves the way for democratization.
Following Bitcoin’s (BTC) 20% correction from its all-time high (ATH) of $73,700 reached in mid-March, the market’s largest cryptocurrency is now trading at $57,00.
Featured image from Shutterstock, chart from TradingView.com
