BlackRock-linked tokenization firm Securitize to go public via SPAC deal

Securitize, the innovative platform specializing in tokenizing real-world assets, has announced plans to become a publicly traded company through a merger with Cantor Equity Partners II, Inc., a special purpose acquisition company (SPAC). In an exclusive interview with CNBC, CEO Carlos Domingo shared that this move values Securitize at $1.25 billion in pre-money equity. "Tokenization is a hot topic right now, yet there are no publicly traded companies in this space," Domingo remarked. He expressed confidence in Securitize's performance in public markets, drawing parallels to the interest in firms like Circle, which has attracted investors eager to connect with the emerging world of stablecoins. Tokenization, the process of creating digital representations of ownership rights for tangible assets like stocks, bonds, and gold on a blockchain, offers advantages such as increased transparency and continuous trading possibilities, as highlighted by industry leaders like Vlad Tenev of Robinhood Markets and Larry Fink of BlackRock. Upon completion of the merger, Securitize Corp. is set to trade on the Nasdaq under the ticker SECZ, with shares expected to commence trading as early as January. The merger will yield approximately $465 million in gross proceeds, comprising $225 million from private investors like Borderless Capital and Hanwha Investment, along with $240 million from the SPAC's trust account, pending no redemptions. The timing of this deal aligns with a significant surge in the tokenized real-world asset (RWA) market, which has seen the combined market value of tokenized U.S. Treasurys soar to about $8.6 billion, reflecting a growth of over 200% in the past year. Overall, the RWA tokenization market has expanded 135% in the last year, reaching a total value of $35 billion. Analysts from Citi predict that this market could approach $4 trillion by 2030, positioning Securitize for substantial growth as it seeks to meet the rising demand for digital assets. Earlier in the year, Circle made headlines with its IPO on the New York Stock Exchange, raising around $1.1 billion. Other cryptocurrency exchanges, such as Gemini and Bullish, have also gone public. Domingo noted that navigating public markets will create both opportunities and challenges for companies as the digital asset industry evolves. He emphasized the necessity for consolidation in the crypto sector, stating that publicly traded companies with access to capital markets would be better positioned to lead this trend. Founded in 2017, Securitize has been instrumental in helping major financial institutions enter the tokenized funds space. Earlier this year, BlackRock introduced its USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain in collaboration with Securitize, allowing qualified investors to digitally hold U.S. Treasurys while earning yields. Securitize has also partnered with notable firms like Apollo, Hamilton Lane, KKR, and VanEck, facilitating the tokenization of over $4 billion in assets. Securitize currently dominates 20% of the RWA tokenization market. The company plans to tokenize its own equity as part of its strategy to showcase how public company processes and trading can effectively transition on-chain. Domingo foresees a future where a vast array of assets, estimated to be worth $400 trillion, could be tokenized, describing this transition as an upgrade that will revolutionize asset management within the next five to ten years.