Securitize Raises $47M in Funding Round Led by BlackRock to Drive Digital Securities Growth
Summary:
Digital securities firm Securitize has secured $47 million in strategic funding led by BlackRock. The proceeds will fuel product development, global expansion, and partnership strengthening. Joseph Chalom, BlackRock's global head of strategic ecosystem partnerships, will join Securitize's board. Additionally, the funds will contribute to the continued growth of BlackRock’s first tokenized fund, BUIDL. The fund has notably garnered a market cap of $375 million in just six weeks, outperforming the Franklin OnChain U.S. Government Money Fund. The funding round also saw contributions from Hamilton Lane, ParaFi Capital, and Tradeweb Markets.
Securitize, a platform specializing in digital securities, has secured $47 million in fresh strategic investment led by BlackRock. Other backers include blockchain creators Aptos Labs and Paxos, as well as Circle, the issuer of a stablecoin. This funding round's proceeds are earmarked for product enhancement, global market penetration, and fortifying alliances in the financial services landscape, according to a statement by Securitize. Moreover, Joseph Chalom, BlackRock's global head of strategic ecosystem partnerships, has been appointed to Securitize's board. Chalom welcomed the funding, underlining that it propels their digital assets strategy forward, set to cater to the ongoing demands of their clientele.
BlackRock collaborated with Securitize in roles such as a transfer agent, tokenization platform, and placement agent during the March rollout of the BlackRock USD Institutional Digital Liquidity Fund (known as BUIDL) on the Ethereum blockchain. BUIDL, being BlackRock’s initial tokenized fund, primarily invests in cash, U.S. Treasury bills, and repurchase contracts. BUIDL disburses dividends, which are accrued daily and paid out monthly via a token deposit worth stably $1. BUIDL investors have an option to transfer their holdings to Circle to receive USD Coin (USDC) stablecoin.
Since its inception six weeks ago, BUIDL has rapidly grown to secure a market capitalization of $375 million, thereby being recognized as the leading tokenized treasury fund, surpassing Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million. Presently, the total value locked in tokenized U.S. treasuries and bonds stands at $1.28 billion, as per data by RWA.xyz.
Among the contributors to Securitize's recent fundraising round were Hamilton Lane, which has been an ally of Securitize since 2022, ParaFi Capital and Tradeweb Markets. Aptos Labs' co-founder and CEO, Mo Shaikh, expressed his firm's commitment to bridging traditional finance with open finance in an efficient and globally accessible manner, with leaders like BlackRock and innovators like Securitize steering the course.
Securitize operates fully registered with the SEC as a broker-dealer and transfer agent and holds membership with the self-regulating body, Financial Industry Regulatory Authority (FINRA).
Published At
5/1/2024 9:07:17 PM
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