Securitize launches new fund service, surpasses $1b in on-chain assets

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As a seasoned analyst with over two decades of experience in both traditional finance (TradFi) and digital assets, I am particularly intrigued by Securitize Inc.’s latest offering – Securitize Fund Services. Having witnessed the evolution of blockchain technology from its infancy, I can confidently say that this development is a significant leap towards bridging the gap between TradFi and decentralized finance (DeFi).

Securitize Inc., a company focusing on the tokenization of real-world assets, has launched a fresh fund administration service under the name Securitize Fund Administration.

The platform unveiled this advancement following the milestone of over $1 billion worth of assets tokenized on the blockchain, as stated in an official statement from the company.

Transforming conventional investments like real estate or shares into digital form using tokenization opens up an opportunity for easier handling and trading via blockchain technology. This transformation brings benefits such as increased transparency, heightened security, and immediate updates on transactions.

Securitize is thrilled to introduce Securitize Fund Services, an extension of our platform providing a complete fund administration solution. This development signifies an important milestone towards offering a cohesive, all-encompassing service that integrates primary market operations with secondary trading facilities…

— Securitize (@Securitize) October 31, 2024

Securitize’s platform caters to institutional investors, whether they come from conventional or decentralized financial sectors, by offering a solution for managing their assets digitally.

The newly established Securitize Fund Services is designed to tackle shortcomings prevalent in conventional fund management, particularly focusing on aspects such as investor registration and determining the net asset value of a fund, as suggested by the press statement.

In October, Securitize teamed up with Zero Hash so that eligible investors could subscribe to BlackRock’s tokenized fund using USDC (USD Coin). With this partnership, institutional investors can now buy shares of the BlackRock USD Institutional Digital Liquidity Fund. Zero Hash takes care of converting these digital funds back into U.S. dollars.

TradFi incentives

Through Securitize Fund Services, institutional clients such as private equity companies and asset managers can experience a smoother process for handling tokenized investments, encompassing fundraising activities and subsequent secondary market transactions.

Through unifying these services onto one central hub, Securitize aims to tackle issues commonly encountered in traditional fund management, including lengthy investor registration processes and reporting delays.

For example, by using smart contracts – self-executing computer codes on a blockchain – tasks such as token distribution and monitoring investment returns can be completed quicker and with greater precision.

Securitize partnerships

As per the announcement, Securitize has formed alliances with significant asset managers such as BlackRock and Hamilton Lane, who are well-known figures in conventional finance. This growing interest is partly fueled by the adaptability of blockchain technology, which can boost liquidity by facilitating quicker transactions on secondary markets and enable real-world assets to connect with decentralized finance platforms.

Securitize is committed to progressing the realm of tangible assets, simplifying the process for institutions to integrate blockchain technology for safe and transparent asset administration and exchange.

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2024-10-31 18:14