Securitize, a leading tokenization firm, is set to list on the Nasdaq at a $1.25 billion valuation through a SPAC merger with Cantor Fitzgerald.
Securitize, a company specializing in tokenizing real-world assets (RWA), is going public now. The BlackRock-backed firm is combining with a Special-Purpose Acquisition Company (SPAC). The transaction is valued at a $1.25 billion pre-money equity value by Securitize immediately.
Institutional Backers Roll Over 100% of Equity in Combined Entity
According to a recent announcement, Securitize is merging with Cantor Equity Partners II, Inc. directly. The blank-check company is successfully sponsored by a Cantor Fitzgerald affiliate. Therefore, the entity’s combined entity will trade on the Nasdaq under the symbol “SECZ”. This strategic alignment provides greater institutional legitimacy now. It also offers a higher level of visibility to the firm as a whole.
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Furthermore, existing equity holders are rolling over all their interests. These investors include big names such as BlackRock and ARK Invest at this point. They also include Morgan Stanley Investment Management and Blockchain Capital. This confidence has the effect of validating the business model of the firm strongly. The deal is poised to generate some $469 million in gross proceeds. This ensures a lot of new capital for new expansion on the whole.
Moreover, Securitize intends to make a first in the industry now. The company intends to tokenize its own equity directly. This will demonstrate how the public company trading could move on-chain rapidly. The action brings their commitment to the core business model to light. It focuses on presenting the practical use of the tokenization technology. This move may create a new precedent for public listings in general.
The firm was first founded in November 2017. It developed a fully regulated, end-to-end platform that worked successfully. This infrastructure is responsible for the issuance, trading, and servicing of tokenized securities. Securitize is the sole vertically-integrated tokenization provider out there. It contains multiple SEC-registered entities for a full compliance now. This holistic approach to tokenizing allows for tokenizing the entire lifecycle for tokenized assets easily.
Public Listing Positions Securitize to Lead $19T RWA Market Shift
Carlos Domingo, Co-Founder and CEO of Securitize, said this is now a defining moment. He said the mission is to democratize capital markets actively. The firm wants to make them more accessible and transparent throughout the world. As a result of this move, finance is moved forward at the speed of the internet. He thinks that they are tokenizing the world well. This ambition paves the way for the whole company.
Brandon Lutnick, Chairman of Cantor Fitzgerald, is extremely confident now. He believes that blockchain technology has enormous potential in general. The collaboration highlights belief in tokenization as a power. This is for the next era of the capital markets, specifically. Thus, institutional interest in the RWA sector is gaining pace strongly.
Today, Securitize has tokenized more than $4 billion in assets. This was done through partnerships with the world’s leading asset managers. Notably, these partners include Apollo and KKR. The launch of KKR’s fund in 2022 was a great milestone in the past. Additionally, tokenization of BlackRock’s BUIDL fund was pivotal too. BUIDL became the largest tokenized RWA in the world in no time.
The public listing offers huge competitive advantages now. It provides access to new capital for the overall expansion of the market. The rising profile leads to growth in the fast-growing RWA sector. Domingo noted that by going public, Securitize can consolidate the industry. This prevents the firm from falling victim to a larger competitor that can then buy it. The firm is targeting a $19 trillion opportunity at this time.
This deal represents the tokenization industry huge landmark. It highlights the growing institutional use of blockchain technology. By listing and tokenizing its own shares, Securitize demonstrates the technology. The company is set to lead in the modernization of the capital markets now. This transition to on-chain finance is accelerating rapidly overall.