tl;dr
Asset management firm BlackRock has led a $47 million investment in Securitize, a prominent player in the tokenization space. Notable participants in the funding round include investment firm Hamilton Lane, financial technology company Tradeweb Markets, and asset manager ParaFi Capital. BlackRock's ...
BlackRock has led a $47 million investment in Securitize, a major player in the tokenization space. Other notable participants in the funding round include investment firm Hamilton Lane, financial technology company Tradeweb Markets, and asset manager ParaFi Capital. As part of the investment, BlackRock's global head of strategic ecosystem partnerships, Joseph Chalom, will join Securitize's board of directors.
The investment represents a step forward in BlackRock's digital assets strategy, signaling confidence in the growth and potential of the tokenization sector. Securitize aims to expand its licenses and explore launching tokens on new blockchains with the fresh investment.
BlackRock has also created the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized fund operating on the Ethereum blockchain, which offers US dollar yields. The firm sees the potential of tokenization to revolutionize capital markets infrastructure, further solidifying its investment in Securitize.
With the new funding, Securitize plans to expand its licenses and investigate launching tokens on new blockchains, such as Aptos (ATP). The company holds a broker-dealer license with FINRA and is looking to obtain a special purpose broker-dealer license from the SEC, while working with established providers like Anchorage and BitGo instead of offering custody services.
In an interview with Fortune Magazine, CEO Carlos Domingo envisions tokenized assets serving two primary use cases: bringing traditional finance products to Web3 investors and introducing Web3 products to traditional finance investors. Tokenization allows efficient fractional ownership, reducing costs and broadening access to investments.
Bitcoin's price correction has affected the market, with the largest cryptocurrency trading at $57,000 due to a 20% drop from its mid-March all-time high of $73,700.
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