BlackRock Leads $47M Funding Round for Tokenization Firm Securitize

• Securitize secured a $47M funding round led by BlackRock to drive digital asset securities.
• BlackRock’s Joseph Chalom joins Securitize’s board as part of the investment.
• Securitize’s funding round coincides with the debut of BlackRock’s tokenized fund, BUIDL.

Securitize, a leading company in digitizing tangible assets, has raised $47 million in a funding cycle led by the most prominent asset manager, BlackRock. Securitize announced this development in an official press statement dated May 1.

This strategic funding also incorporates contributions from Hamilton Lane, ParaFi Capital, and Tradeweb markets. Blockchain developers Aptos Labs, Paxos, and stablecoin issuer Circle were additional investors in the funding round.

In the report, Securitize stressed that the provided funds will drive ongoing innovation and growth, potentially consolidating its role as a frontrunner in the digital asset securities landscape. Securitize co-founder Carlos Domingo expressed delight at the new funding, especially considering the involvement of financial behemoths. Domingo added:

“In our view, the transformative potential of blockchain technology to reshape the future of finance in general – and tokenization in particular – is promising.”

As a component of the investment, Joseph Chalom, BlackRock’s Head of Partnerships, has been designated to Securitize’s Board of Directors. Reacting to the investment, Chalom noted that BlackRock’s investment in Securitize aligns with their conviction that tokenization holds the potential to catalyze substantial transformation in capital markets infrastructure.

Notably, the funding round coincides with the debut of BlackRock’s inaugural tokenized fund on Ethereum, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This investment is accessible to investors through subscription via Securitize. 

In March, Securitize collaborated with BlackRock as a transfer agent, tokenization platform, and placement agent for BUIDL. BUIDL is structured to invest in cash, U.S. Treasury bills, and repurchase agreements. It distributes dividends accrued daily by depositing tokens valued at $1 monthly. 

Holders of BUIDL shares can exchange their shares for USDC stablecoin through Circle. In six weeks since its inception, BUIDL has accrued a market capitalization of $375 million. This achievement surpasses the Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million.