BlackRock Leads $47M Strategic Funding Round for Securitize

Securitize, a leading digital securities platform, has secured $47 million in strategic funding led by investment giant BlackRock. Other investors in the funding round include blockchain developers Aptos Labs Paxos and stablecoin issuer Circle.

Securitize said in a statement that the proceeds from the funding round will be used for product development, global expansion, and strengthening partnerships in the financial services ecosystem.

As part of the investment, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, will join Securitize’s board of directors. Chalom expressed excitement about the investment, stating that it marks “another step in the evolution of our digital assets strategy” and will help meet the future needs of their clients.

BUIDL Fund Surpasses Expectations

Securitize recently collaborated with BlackRock as a transfer agent, tokenization platform, and placement agent to launch the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain in March. BUIDL is BlackRock’s first tokenized fund and has garnered significant attention within the market.

BUIDL invests in assets like cash, United States Treasury bills, and repurchase agreements. It offers dividends accrued daily through a monthly deposit of stable tokens pegged to $1. Its shareholders can transfer their shares to Circle in exchange for USD Coin stablecoin.

Within six weeks of its launch, BUIDL has reached 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. According to data from RWA.xyz, there is currently $1.28 billion locked in tokenized U.S. treasuries and bonds.

Furthermore, Notable contributors to the funding round include investment manager Hamilton Lane, who has collaborated with Securitize since 2022. ParaFi Capital and Tradeweb Markets are also among the contributors.

However, Mo Shaikh, co-founder and CEO of Aptos Labs, emphasized the significance of bridging traditional finance with open finance, stating, “With leaders like BlackRock and pioneers like Securitize at the helm, there’s no doubt that a significant piece of the future of finance will play out on-chain.”

Moreover, Securitize registers with the Securities and Exchange Commission (SEC) as a broker-dealer and transfer agent and is a member of the Financial Industry Regulatory Authority (FINRA). This underscores its commitment to regulatory compliance and investor protection.

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