BlackRock, a massive investment firm with over $10 trillion in assets, has invested $47 million in Securitize, a major player in the tokenization industry.
BlackRock’s Tokenization Strategy
This investment aligns with BlackRock’s belief in the transformative power of tokenization in capital markets. The company has created its own tokenized fund, BUIDL, which operates on the Ethereum blockchain and offers US dollar yields.
Securitize’s Role
Securitize has gained the trust of financial giants like BlackRock, Hamilton Lane, and KKR due to its compliance-focused approach. The company has collaborated with BlackRock’s BUIDL fund to issue tokenized private credit funds.
Expansion Plans
With this investment, Securitize aims to expand its operations and explore launching tokens on new blockchains like Aptos. It is also considering obtaining a special purpose broker-dealer license from the SEC.
Tokenization’s Benefits
Securitize CEO Carlos Domingo sees two main benefits of tokenization:
- Bringing traditional finance products to Web3 investors
- Introducing Web3 products to traditional finance investors
Tokenization allows for fractional ownership and democratizes access to investments that were previously restricted due to high minimum requirements.
Cryptocurrency Market Update
As of this writing, Bitcoin is trading at $57,000, down 20% from its all-time high.
