BlackRock funds Securitize RWA Tokenization expansion

Securitize, a pioneer in tokenizing real-world assets using blockchain technology, has completed a $47 million funding round led by leading asset manager BlackRock. 

The development was revealed on Wednesday via a press release on the company’s website. Other investors who supported the Securitize RWA tokenization expansion mission include Hamilton Lane, ParaFi Capital, Tradeweb Markets, Aptos Labs, Circle, and Paxos.

The leading service provider in tokenizing real-world assets such as real estate, debt, equity and other financial instruments onto the blockchain will use the contributed funds to innovate and expand its capital markets digitization efforts. 

Securitize’s CEO and co-founder Carlos Domingo hailed the investors’ support, citing blockchain’s “transformative potential” to reshape finance through tokenization. “We are thrilled to have the support of such distinguished investors as we continue to drive the digitization of capital markets through tokenization,” said Domingo. 

In response, BlackRock’s global head of strategic ecosystem partnerships Joseph Chalom said the company’s investment in Securitize is another step in the evolution of BlackRock’s digital assets strategy.

“Tokenization has the potential to drive a significant transformation in capital markets infrastructure, and our investment will help foster innovation to meet future client needs,”  Chalom explained.

Hamilton Lane’s Juan Delgado cited Securitize’s leadership, adding “We are committed to making private markets more accessible through digital, token-based tech.”

ParaFi’s Ben Forman further praised Securitize’s “cutting-edge infrastructure” designed to onboard traditional assets onto the blockchain with transparency and efficiency benefits.

Read Also: Real-World Assets Tokenization Explained: How it Works & Everything In Between

The BlackRock First Tokenized Fund – BUIDL

According to the press release, the strategic $47 million funding round coincided with the launch of BlackRock’s first tokenized fund on a public blockchain and the selection of Securitize as the Fund’s transfer agent. 

Dubbed BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the Fund offers a stable $1 value per token with accrued dividends paid directly to investor wallets monthly.

“The Fund invests 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain,” the announcement revealed. 

While the Ethereum-issued Fund is available to investors by subscribing with Securitize, BUIDL holders can transfer their shares to Circle for USDC through its smart contract functionality.

This development comes a few months after BlackRock and 11 other issuers got approval from the U.S. SEC to issue spot bitcoin exchange-traded funds (ETFs).

Alongside Franklin Templeton, Grayscale, ARK Invest and Van Eck, BlackRock is among the top investment firms gunning for spot Ether ETF approval from the U.S. SEC. 

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