Securitize, a leading platform for tokenizing real-world assets, is set to go public via a merger with a special purpose acquisition company, signaling the maturation of digital asset markets for institutional investors.
The company will merge with Cantor Equity Partners II and list on Nasdaq under the ticker SECZ, valuing Securitize at $1.25 billion before money. The transaction is projected to generate up to $465 million in gross proceeds.
These proceeds include $225 million committed by private investors like Borderless Capital and Hanwha Investment, alongside $240 million from the SPAC’s trust account, assuming no redemptions. Securitize’s chief executive, Carlos Domingo, indicated the company could begin trading as early as January.
Domingo highlighted the strategic importance of a public listing, stating it allows investors to gain direct exposure to tokenization, much like buying Circle provides exposure to stablecoins. He also noted the current absence of a publicly traded company solely focused on tokenization.
The move comes amid a significant surge in the tokenized real-world asset (RWA) market, which has expanded by 135% over the past year to more than $35 billion. Tokenized U.S. Treasury RWAs alone have climbed to approximately $8.6 billion, a more than 200% increase in the last 12 months.
Analysts at Citi project the overall RWA tokenization market could reach nearly $4 trillion by 2030. This growth has attracted major financial players and publicly listed entities.
Securitize, founded in 2017, has focused on tokenizing funds and real-world assets, reporting profitability in recent quarters. The company holds nearly 20% of the RWA tokenization market, making it the largest platform in the sector.
A notable partnership includes BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), launched in March 2024 on the Ethereum blockchain with Securitize’s collaboration. This fund enables qualified investors to hold digital U.S. Treasuries and earn on-chain yield.
Securitize has also facilitated the tokenization of over $4 billion in assets through collaborations with asset managers such as Apollo, Hamilton Lane, KKR, and VanEck.
Domingo envisions a future where “everything will be on-chain,” citing improvements in transparency and efficiency. He projected that $400 trillion in assets could potentially be tokenized, anticipating a massive migration to on-chain ledgers within five to ten years.
For institutional investors, tokenization offers benefits like more transparent trading and 24/7 operations, driving increased interest from major investment houses. The public listing is expected to draw more capital and liquidity into the RWA ecosystem.
However, the sector still navigates challenges related to regulation, custody, and interoperability across different blockchains. Domingo suggested that consolidation within the industry could accelerate solutions, though it might also centralize risks.
Securitize also plans to digitalize its own shares post-listing, aiming to demonstrate how a public company can operate and trade its securities on-chain. Market observers will closely monitor Securitize’s performance to gauge the sustainable growth and long-term profitability of the broader tokenization sector.