Securitize, the primary tokenization partner of BlackRock has grown its AUM to surpass $1 billion.
Securitize, a leading asset tokenization firm, has hit a significant milestone by surpassing $1 billion in tokenized onchain assets. The success of BlackRock USD Institutional Digital Liquidity Fund (BUIDL) contributed to elevating Securitize past the billion-dollar mark. Notably, BUIDL had more onchain liquidity locked in while other assets supported by the startup also contributed.
Securitize Charting New Era in Tokenized Funds
This achievement comes barely three months after Securitize crossed the half-billion dollar mark in July 2024. The firm’s unveiling of a new service coincided with this milestone crossing.
As revealed earlier, this new venture, Securitize Fund Services (SFS), will simplify the administration of tokenized funds. This will help streamline operational and compliance tasks linked to creating new blockchain-based real-world asset products.
Carlos Domingo, co-founder and CEO of Securitize, maintains that crossing the billion-dollar mark is unsurprising. Domingo believes people want it, hence the rapid increase. However, Securitize did not anticipate the speedy climb in such a short time frame.
With its growth, Securitize Fund Services will provide crucial services to companies like Hamilton Lane and American investment management firm BlackRock Inc (NYSE: BLK). One of the most important services SFS will assist with includes creating new crypto-based funds. Beyond this, Securitize will also help bolster tax services, financial reporting, and record keeping. It will also assist these companies in regulatory compliance.
The essence of SFS is to ensure the efficient operation of a fund. According to Securitize’s CEO, customers have already lined up to benefit from their services. Domingo emphasized that consolidating the fund administrator in-house would ensure better service delivery.
Global Reach and Cross-Chain Integration with Wormhole
The partnership between Securitize and BlackRock to launch a tokenized investment fund started in March 2024.
As reported by Coinspeaker, BlackRock’s expansion signaled a strategic move for the asset manager. According to Larry Fink, BlackRock’s CEO, creating more tokenized assets and securities could transform finance.
Fink maintained that instead of investing in gold as a hedge against inflation, it would pay to invest in an international asset like Bitcoin. Before becoming a core advocate for Bitcoin, the BlackRock CEO was skeptical of the digital currency. However, the firm now has a spot Bitcoin ETF product and is dominating the market.
Meanwhile, Domingo says SFS will make its services available globally. Securitize appears ready for this global reach with its recent strategic partnership with Wormhole. In a recent move, the company announced Wormhole as its official cross-chain partner for its tokenized assets.
With the collaboration, tokenized assets on Securitize now have the liberty to move across multiple blockchain networks. This offers huge opportunities to purchase, trade, or manage digital assets more effectively. The flexibility that comes with it also enhances liquidity for institutional players overall.
next