Digital securities platform Securitize has raised $47 million in a new strategic funding round led by BlackRock. Blockchain developers Aptos Labs and Paxos and stablecoin issuer Circle were also among the investors.
Proceeds from the funding round will be used for product development, global expansion and strengthening partnerships in the financial services ecosystem, Securitize said in a statement.
BlackRock global head of strategic ecosystem partnerships Joseph Chalom will join the Securitize board of directors. Chalom called the investment in Securitize “another step in the evolution of our digital assets strategy […] that will help meet the future needs of our clients.”
Securitize partnered with BlackRock as a transfer agent, tokenization platform and placement agent on the March launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain. BUIDL is BlackRock’s first tokenized fund.
BUIDL invests in cash, United States Treasury bills and repurchase agreements and pays dividends accrued daily through a monthly deposit of tokens stably worth $1. BUIDL holders have the option to transfer their shares to Circle in exchange for USD Coin (USDC) stablecoin.
In the six weeks of its existence, BUIDL amassed a market cap of $375 million to become the largest tokenized treasury fund, surpassing the Franklin OnChain U.S. Government Money Fund (BENJI) by $7 million. There is currently $1.28 billion locked in tokenized U.S. Treasurys and bonds, according to RWA.xyz.
Related: Securitize issues tokenized assets in Spain, plans September trading start
Investment manager Hamilton Lane, which has worked with Securitize since 2022, also contributed to the fundraise, along with ParaFi Capital and Tradeweb Markets. Aptos Labs co-founder and CEO Mo Shaikh told Cointelegraph:
“Aptos Labs is […] a key participant in closing the gap between traditional finance and open finance in a very real and globally accessible way. 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.”
Securitize is registered with the Securities and Exchange Commission as a broker-dealer and transfer agent and is a member of the Financial Industry Regulatory Authority self-regulatory organization.