Digital securities platform Securitize has raised $47 million in a new strategic funding round led by BlackRock. Blockchain developers Aptos Labs and Paxos, and stablecoin issuer Circle, were also among the investors. Proceeds from the funding round will be used for product development, global expansion, and strengthening partnerships in the financial services ecosystem, Securitize said in a statement.
According to Cointelegraph, BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, will join the Securitize board of directors. Chalom called the investment in Securitize “another step in the evolution of our digital assets strategy that will help meet the future needs of our clients.”
Securitize partnered with BlackRock as a transfer agent, tokenization platform, and placement agent on the March launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain. BUIDL is BlackRock’s first tokenized fund.
BUIDL invests in cash, United States Treasury bills, and repurchase agreements, and pays dividends accrued daily through a monthly deposit of tokens stably worth $1. BUIDL holders have the option to transfer their shares to Circle in exchange for USD Coin stablecoin.
In the six weeks of its existence, BUIDL amassed a market cap of $375 million to become the largest tokenized treasury fund, surpassing the Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million. There is currently $1.28 billion locked in tokenized U.S. treasuries and bonds, according to RWA.xyz.
Investment manager Hamilton Lane, who has worked with Securitize since 2022, also contributed to the fundraiser, along with ParaFi Capital and Tradeweb Markets.
About Securitize
Securitize, the leader in tokenizing real-world assets, is driving the compliant digitization of financial assets through next-generation blockchain technology. Securitize, or through its subsidiaries, is a registered broker-dealer (member SIPC) and operates a primary marketplace, an alternative trading system as well as a top 10 transfer agent and has an exempt reporting adviser.
About Hamilton Lane
Hamilton Lane is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs nearly 700 professionals operating in offices throughout North America, Europe, Asia Pacific, and the Middle East. Hamilton Lane has approximately $903 billion in assets under management and supervision, composed of $120 billion in discretionary assets and nearly $783 billion in non-discretionary assets, as of December 31, 2023. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private market strategies, sectors, and geographies.
About ParaFi
ParaFi Capital is a leading alternative asset management firm that operates hedge fund and venture capital strategies focused on the digital asset ecosystem. Founded in 2018, ParaFi was among the earliest investors in the blockchain industry and has evolved into a trusted partner by leading institutions globally. ParaFi's investment and technology team pursues idiosyncratic opportunities across venture, liquid, and quantitative strategies with a focus on bridging traditional capital markets and blockchain technology. As a firm, ParaFi is committed to a culture of rigorous research, technical development, and institutional underwriting to enable exceptional results for our partners and portfolio companies.
About Tradeweb
Tradeweb Markets Inc. is a leading, global operator of electronic marketplaces for rates, credit, equities, and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing, and reporting for more than 50 products to clients in the institutional, wholesale, and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution, and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.5 trillion in notional value traded per day over the past four quarters.
Conclusion
Securitize, a leading platform in digitizing real-world assets, has successfully secured $47 million in strategic funding, spearheaded by BlackRock. This investment marks a significant milestone in their journey towards product enhancement, global expansion, and fostering stronger partnerships in the financial sector. With BlackRock’s Joseph Chalom joining Securitize’s board, the collaboration promises to address future client needs effectively. Notably, their partnership with BlackRock on the BUIDL fund has rapidly gained traction, emerging as the largest tokenized treasury fund in just six weeks. The involvement of reputable investors like Hamilton Lane, ParaFi Capital, and Tradeweb underlines the confidence in Securitize’s vision and capabilities, positioning them for further growth and innovation in the digital asset ecosystem.
Official Website:
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.