Securitize, a digital securities platform, has successfully raised $47 million in a strategic 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 from this round will be utilized for various purposes such as product development, global expansion, and strengthening partnerships within the financial services ecosystem, according to a statement from Securitize.
As part of this investment, BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, will join the board of directors at Securitize. Chalom expressed his belief that this investment in Securitize is a significant step in the evolution of their digital assets strategy, one that will cater to the future needs of their clients.
Securitize previously collaborated with BlackRock as a transfer agent, tokenization platform, and placement agent during the launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain in March. BUIDL is BlackRock’s inaugural tokenized fund, investing in cash, United States Treasury bills, and repurchase agreements. It pays dividends daily and offers the option for BUIDL holders to transfer their shares to Circle in exchange for the USD Coin (USDC) stablecoin.
In just six weeks since its launch, 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 a total of $1.28 billion locked in tokenized U.S. Treasurys and bonds, as reported by RWA.xyz.
In addition to BlackRock, other contributors to the funding round include investment manager Hamilton Lane, ParaFi Capital, and Tradeweb Markets. Securitize, registered with the Securities and Exchange Commission as a broker-dealer and transfer agent, is also a member of the Financial Industry Regulatory Authority self-regulatory organization.
This article originally appeared in the magazine “Crypto City: Guide to San Francisco Bay Area”.