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Real World Assets Could Get Boost as BlackRock Leads $47 Million Tokenization Firm Funding

Last Updated May 3, 2024 9:43 AM
Teuta Franjkovic
Last Updated May 3, 2024 9:43 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • BlackRock leads the tokenization charge by investing more than $45 million in Securitize.
  • The funding fuels Securitize’s mission to advance tokenization technologies and bolster real-world assets.
  • BlackRock’s BUIDL fund and ETF filings suggest a wider push towards digital asset offerings.

Blackrock, the world’s largest asset management firm, has spearheaded a strategic investment round, injecting $47 million  into Securitize, a company specializing in the digitalization of capital markets.

This funding round, which also saw participation from various other financial and crypto-native companies, indicates Blackrock’s commitment to exploring tokenization in global capital markets, giving real-assets a so-needed boost.

Blackrock Leads $47 Million Bet on Securitize, Signaling Tokenization’s Rise

Blackrock, the largest asset manager globally, is placing a significant bet  on the revolutionary impact of tokenization on capital markets. The firm led a $47 million strategic funding round in Securitize, a company at the forefront of digitizing global markets through decentralized technology to integrate financial assets into the blockchain.

The funding round also included contributions from notable participants such as:

  • Hamilton Lane, a private market investment firm.
  • Parafi Capital, a crypto-focused venture capital firm.
  • Tradeweb, a market operating company.

Additionally, crypto-native firms like Aptos Labs, Circle, and Paxos were involved.

Securitize has announced  that the capital raised in this round will bolster their mission to transition financial markets onto the blockchain. Specifically, the funds will be used to drive innovation and expansion efforts, reinforcing Securitize’s leadership in asset tokenization technologies.

Securitize Bolsters Leadership and Doubles Down on Blockchain

Securitize, underpinned by a recent influx of investment, is doubling down on its confidence in tokenization technology‘s future. CEO Carlos Domingo emphasized  the potential of blockchain to revolutionize finance, particularly through tokenization, noting:

“The transformative potential of blockchain technology to reshape the future of finance in general—and tokenization in particular—is promising.”

The investment round also led to a strategic enhancement of Securitize’s leadership. Joseph Chalom, Blackrock’s Global Head of Strategic Ecosystem Partnerships, will join Securitize’s board of directors. His inclusion signifies the importance of this venture for Blackrock, especially in terms of its strategy on digital assets. Chalom highlighted this move as pivotal for Blackrock’s engagement with the evolving landscape of digital finance.

He expressed  that tokenization could substantially transform the infrastructure of capital markets. BlackRock’s investment in Securitize represents a further development in the evolution of their digital assets strategy, according to Chalom. He said:

“We believe that tokenization has the potential to drive a significant transformation in capital markets infrastructure. Our investment in Securitize is another step in the evolution of our digital assets strategy.”

BUIDL Fund and ETF Filings Signal Broader Strategy

Securitize also offers access to Blackrock’s USD Institutional Digital Liquidity Fund (BUIDL), which is the firm’s initial foray into tokenized funds. Subscribers to BUIDL benefit from a stable value of $1 per token and receive dividends directly in their wallets. This is made possible through the fund’s investments in cash and US Treasury bills.

This activity is consistent with BlackRock’s growing engagement in digital asset funds. Notably, the company launched a spot-based Bitcoin ETF in January, which rapidly accumulated over $15 billion in assets under management. It also filed for a spot Ethereum ETF.

In a January interview  with CNBC, BlackRock CEO Larry Fink discussed the evolving landscape of finance. He indicated that the Bitcoin and Ethereum ETFs are likely just the beginning of a more extensive shift towards asset tokenization. Fink articulated a strong conviction that tokenization represents the next significant advancement in the financial sector, signaling BlackRock’s strategic intent to further integrate digital assets into its offerings.

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