BlackRock-Backed Securitize Raises Strategic Funding From Jump Crypto

Published: Thursday, May 8, 2025 at 3:30 pm

Securitize Secures Strategic Funding, Signaling Growth in Tokenized Assets

Miami-based Securitize, a leading platform for tokenizing real-world assets (RWAs) like Treasurys and private credit, has received strategic funding from Jump Crypto, the digital asset arm of quantitative trading firm Jump Trading. The financial details of the deal remain undisclosed. This marks the first outside investment in Securitize since BlackRock's $47 million round last year, solidifying its position in the rapidly expanding tokenization market.

This investment underscores the growing interest in tokenization, where traditional assets are represented on blockchains. Securitize facilitates the tokenization of mainstream products, including Treasurys, private credit, and private equity, on blockchains like Ethereum and Solana. BlackRock's BUIDL fund, a tokenized money market fund, is a prime example, currently managing $2.86 billion in assets. The tokenized Treasury market has seen an impressive 800% surge in the past year, reaching nearly $7 billion, indicating strong investor demand for yield-generating alternatives.

Securitize's COO, Michael Sonnenshein, highlights the advantages of tokenization, such as daily dividend payments and increased yield sharing with holders. He also notes the potential for pairing tokenized funds with decentralized finance (DeFi) to unlock new lending opportunities. Jump Crypto's investment will support Securitize in expanding the role of tokenized assets in collateral management and trading.

The tokenization sector is experiencing rapid growth, with RWAs more than doubling in value since BUIDL's launch. The Boston Consulting Group projects the tokenized asset market to reach a staggering $19 trillion by 2033. Securitize is also preparing for its next phase, partnering with Ethena Labs to launch a new blockchain called Converge, designed to provide a compliant gateway for institutional capital into DeFi, expected to launch later this quarter.

BNN's Perspective: The rise of tokenization presents both exciting opportunities and potential risks. While the ability to democratize access to investments and improve efficiency is promising, regulatory clarity and investor protection remain paramount. This investment from Jump Crypto, coupled with BlackRock's involvement, suggests a growing acceptance of tokenization within the traditional financial system. However, a measured approach is crucial to ensure responsible innovation and prevent potential market instability.

Keywords: Securitize, tokenization, real-world assets (RWAs), Jump Crypto, BlackRock, BUIDL, tokenized Treasurys, Ethereum, Solana, DeFi, Converge, Michael Sonnenshein, blockchain, private credit, private equity, tokenized assets, investment, digital assets, capital markets, SEC, Ethena Labs

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