Securitize, a digital securities platform, has successfully raised $47 million in a recent funding round led by BlackRock. Other notable investors in this round include blockchain developers Aptos Labs and Paxos, as well as stablecoin issuer Circle.
The funds raised from this round will be allocated towards various objectives, including product development, expanding globally, and forging stronger partnerships within the financial services ecosystem, according to a statement from Securitize.
As part of the deal, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, will join the board of directors at Securitize. Chalom believes that this investment in Securitize marks a significant advancement in their digital assets strategy, positioning them well to meet the future needs of their clients.
Securitize has recently partnered with BlackRock as a transfer agent, tokenization platform, and placement agent for the launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain. BUIDL is BlackRock’s inaugural tokenized fund, investing in cash, United States Treasury bills, and repurchase agreements. BUIDL pays dividends on a daily basis through a monthly deposit of tokens that are stably valued at $1. Shareholders of BUIDL also have the option to convert their shares to USD Coin (USDC) stablecoin by transferring them to Circle.
Since its launch six weeks ago, BUIDL has amassed a market cap of $375 million, making it the largest tokenized treasury fund. This surpasses the Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million. Currently, there is $1.28 billion locked in tokenized U.S. Treasurys and bonds, as reported by RWA.xyz.
Securitize’s fundraising efforts also received contributions from investment manager Hamilton Lane, which has been collaborating with Securitize since 2022, as well as ParaFi Capital and Tradeweb Markets. Mo Shaikh, the co-founder and CEO of Aptos Labs, expressed his support for Securitize, emphasizing their registration with the Securities and Exchange Commission as a broker-dealer and transfer agent, as well as their membership in the Financial Industry Regulatory Authority self-regulatory organization.
Overall, Securitize’s strategic funding round, led by BlackRock, signifies a significant milestone for the company as it continues to establish itself as a prominent player in the digital securities industry.