The funding round aligns with BlackRock’s choice of Securitize as the transfer agent of its first tokenized funds on a public blockchain.
Securitize, the leader in tokenizing real-world assets, has announced a significant milestone in its journey with a $47 million funding round led by BlackRock. The tragic investment also includes funding from Hamilton Lane (HLNE), ParaFi Capital, Tradeweb Markets (TW), Aptos Labs, Circle, and Paxos.
According to the announcement, the investment reinforces Securitize’s pioneering role in digitizing capital markets through blockchain. The capital infusion will drive its ongoing innovation and expansion, solidifying its digital asset securities ecosystem leadership.
As part of the investment, Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, joins Securitize’s Board of Directors.
“We are thrilled to have the support of such distinguished investors as we continue to drive the digitization of capital markets through tokenization,” said Securitize Co-Founder and CEO Carlos Domingo. “In our view, the transformative potential of blockchain technology to reshape the future of finance in general and tokenization in particular,” he added.
Partnership with Securitize.
Interestingly, Hamilton Lane disclosed a longstanding partnership with Securitize since their initial collaboration in 2022, which facilitated access to the Senior Credit Opportunities Fund (SCOPE) and Equity Opportunity Fund V.
Securitize highlighted its commitment to making the private markets accessible to a broader group of investors.
The firm acknowledged that it has developed a cutting-edge infrastructure that allows traditional assets to function on high-speed, modern blockchain rails, which enables greater transparency, immediate settlement, reduced counterparty risk, and heightened programmability.
Additionally, Tradeweb’s chief product officer, Chris Bruner, mentioned that tokenization has the capacity to drive greater efficiency and accessibility across financial markets.
The funding round aligns with the debut of BlackRock’s first tokenized fund issued on Ethereum (ETH), the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), accessible to investors through subscription through Securitize.
The Purpose of BUIDL.
The primary objective of BUIDL is to maintain a stable token value of $1 and distribute daily accrued dividends directly to investors’ wallets in the form of new tokens monthly.
The Fund allocates 100% of its assets to cash, U.S. Treasury bills, and repurchase agreements, enabling investors to earn yields while holding the token on the blockchain. Investors can transfer their assets to other pre-approved investors.
Lastly, BUIDL holders can use Circle’s smart contract feature to transfer their shares to USDC. Fund participants will enjoy flexible custody choices when holding their tokens.
