Securitize, a digital securities platform, has successfully raised $47 million in a strategic funding round, with investment firm BlackRock leading the way. Other notable investors in the round include blockchain developers Aptos Labs and Paxos, as well as stablecoin issuer Circle. The funds raised will be used to support product development, expand globally, and strengthen partnerships within the financial services ecosystem, according to a statement from Securitize.
As part of the investment, Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, will join the board of directors at Securitize. Chalom described the investment as a significant step in the evolution of BlackRock’s digital assets strategy, which aims to meet the future needs of their clients.
Securitize previously collaborated with BlackRock as a transfer agent, tokenization platform, and placement agent for the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund, built on the Ethereum blockchain, is BlackRock’s first tokenized fund and invests in cash, US Treasury bills, and repurchase agreements. BUIDL pays dividends daily through a monthly deposit of tokens worth $1, which can be exchanged for USD Coin (USDC), a stablecoin issued by Circle.
Since its launch, BUIDL has quickly gained popularity, accumulating a market cap of $375 million in just six weeks. This makes it the largest tokenized treasury fund, surpassing the Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million. Currently, there is $1.28 billion locked in tokenized US Treasurys and bonds, according to RWA.xyz.
In addition to BlackRock, other contributors to the funding round include investment manager Hamilton Lane, which has been working with Securitize since 2022, as well as ParaFi Capital and Tradeweb Markets.
Securitize is a registered broker-dealer and transfer agent with the Securities and Exchange Commission and is a member of the Financial Industry Regulatory Authority self-regulatory organization.
Overall, this funding round and partnership with BlackRock further solidify Securitize’s position in the digital securities market and pave the way for future growth and innovation.