BlackRock-backed Real-World Assets (RWA) Tokenization Company Securitize is going public through a merger with a special purpose acquisition company (SPAC) at a $1.25 billion pre-money valuation.
According to a Tuesday announcementSecuritize merged with Cantor Equity Partners II, Inc.—a blank-check company sponsored by an affiliate of financial services firm Cantor Fitzgerald—listed on the NASDAQ. The company’s co-founder and CEO, Carlos Domingo, said the company was founded “to democratize capital markets by making them more accessible, transparent, and efficient through tokenization.”
Domingo said the next step is to make “financial markets work at the speed of the internet.” Cantor Fitzgerald Chairman and CEO Howard Lutnick, who also sits on Cantor Equity Partners II, said blockchain technology has “enormous potential to transform finance.”
Reports earlier this month indicated that Securitize is in talks with Cantor Fitzgerald about going public through this structure.
Related: Wallet on Telegram to list xstocks tokenized stocks and ETFs
Securitize play in the big league
Securitize is involved in called real-world assets. Tokenization turns their ownership or yield rights into digital tokens, allowing them to be exchanged, used as collateral or integrated into decentralized financial systems (DEFI).
Financing was previously seen from the World’s Top Asset Manager, BlackRock, Major Investment Firm Ark Invest, and Morgan Stanley Investment Management, among others. The company is also responsible for Tokenizing Blackrock’s Buidl Fund, which recently integrated with Defi.
Related: Alpaca rolls out network enabling direct tokenization of US stocks
Real-world assets are seeing increased growth
RWA, as a niche in the crypto industry, has seen steady growth, especially given the increasingly favorable regulatory environment in the US. In recent months, blockchain firm Ondo Finance has urged the US Securities and Exchange Commission (SEC) delay or reject NASDAQ’s proposal To exchange tokenized securities, citing the need for more oversight.
Earlier this month, Rob Hadick, general partner at crypto venture firm Dragonfly, said it would bring tokenized equities significant benefit to the traditional marketbut not the crypto industry. He said tokenized assets will bring 24/7 trading, but he doesn’t expect institutions to “want to go directly to general-purpose chains” and instead operate in siled ecosystems.
Magazine: Tradfi builds Ethereum L2S to tokenize trillions in RWAS: Inside Story
