The financial world is witnessing a pivotal shift as traditional institutions embrace blockchain innovation, and at the forefront stands BlackRock. The asset management giant, overseeing over $10 trillion in assets, has led a $47 million strategic funding round in Securitize, a leading tokenization platform. This move marks another milestone in BlackRock’s expanding digital assets strategy and signals growing confidence in the future of real-world asset tokenization.
Joining BlackRock in the investment are prominent players including Hamilton Lane, Tradeweb Markets, and ParaFi Capital—further validating the legitimacy of blockchain-based finance within mainstream capital markets. As part of the deal, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, will join Securitize’s board of directors.
“At BlackRock, we believe that tokenization has the potential to drive a significant transformation in capital markets infrastructure,” said Chalom. “Our investment in Securitize is another step in the evolution of our digital assets strategy.”
This partnership builds on an existing collaboration: Securitize was the technology backbone behind BlackRock’s first tokenized fund, BUIDL, launched in March 2024. The fund, which represents shares in a U.S. Treasury instrument, quickly gained traction and now holds over $375 million in assets—making it the largest tokenized treasury fund in the market.
The Rise of Real-World Asset Tokenization
Tokenization refers to the process of converting ownership rights of physical or financial assets—like stocks, bonds, real estate, or money-market funds—into digital tokens on a blockchain. These on-chain assets can be traded 24/7, enable fractional ownership, reduce settlement times, and lower operational costs.
For decentralized finance (DeFi) platforms, tokenized real-world assets (RWAs) offer a way to integrate stable, yield-generating instruments without leaving the crypto ecosystem. While stablecoins like USDC dominate as dollar-pegged assets, they typically don’t offer yields due to regulatory concerns. Tokenized Treasury funds like BUIDL fill this gap by providing regulated, income-generating alternatives.
Securitize, founded in 2017 by Carlos Domingo and Jamie Finn, specializes in helping financial institutions issue compliant digital securities. Unlike many blockchain startups focused on speculative tokens, Securitize takes a compliance-first approach, aligning with SEC regulations and working within existing financial frameworks.
“Being able to become a provider for BlackRock, for a small company like us, has been quite a journey,” Domingo said in an exclusive interview. “BlackRock’s participation signals to the market that this isn’t a one-off project—it’s the beginning of a long-term strategic relationship.”
Strategic Partnerships and Market Expansion
Securitize’s credibility has attracted elite financial partners beyond BlackRock. In 2021, Morgan Stanley co-led a $48 million funding round and secured a board seat. Today, Securitize powers tokenized private credit funds for Hamilton Lane and KKR, two major alternative asset managers.
Private credit funds—where institutions lend directly to private companies—typically offer higher yields than traditional fixed income but come with high entry barriers and slow transaction processes. Tokenization streamlines these inefficiencies by enabling:
- Fractional ownership with lower minimum investments
- Faster settlement and redemption cycles
- Transparent recordkeeping via smart contracts
- Automated distribution of interest payments
“This opens up democratization,” Domingo emphasized. “By allowing efficient fractional ownership across a multitude of investors and securities, tokenization can make high-yield opportunities accessible to more people.”
In 2022, Securitize also launched its own Alternative Trading System (ATS)—a regulated marketplace where investors can trade tokenized securities. This positions the company not just as an issuer platform but as a full-stack infrastructure provider in the emerging RWA ecosystem.
Regulatory Pathways and Future Roadmap
As regulatory scrutiny intensifies around digital assets, Securitize is navigating compliance carefully. The firm already holds a broker-dealer license from FINRA and is exploring the SEC’s newer Special Purpose Broker-Dealer (SPBD) license introduced in 2021—a path recently taken by Prometheum.
However, unlike Prometheum—which plans to custody Ether as a security—Securitize does not intend to offer custody services. Instead, it partners with trusted custodians like Anchorage Digital and BitGo to manage assets securely.
“We’re focused on products already classified as securities,” Domingo clarified. “I’ve been running an actual business with live products. I just don’t know how some others plan to solve the operational challenges they’re taking on.”
With new capital from BlackRock and others, Securitize plans to:
- Expand its regulatory licenses
- Launch tokens on additional blockchains (including Aptos)
- Scale its ATS for broader institutional use
- Enhance cross-chain interoperability
FAQ: Understanding Tokenization and Institutional Adoption
Q: What is real-world asset (RWA) tokenization?
A: It’s the process of converting ownership of tangible or financial assets—like bonds or real estate—into digital tokens on a blockchain, enabling easier trading, fractional ownership, and automation through smart contracts.
Q: Why are big firms like BlackRock investing in tokenization?
A: Because it promises to modernize outdated financial infrastructure—reducing costs, increasing liquidity, and unlocking new revenue streams while maintaining regulatory compliance.
Q: Is tokenized finance safe and regulated?
A: Platforms like Securitize operate under existing securities laws and hold FINRA licenses. Their focus on compliance makes them attractive partners for traditional finance institutions entering Web3.
Q: Can individual investors access tokenized funds like BUIDL?
A: Currently, access is limited to qualified crypto-native investors via platforms like Ethereum. However, broader retail access may expand as regulations evolve.
Q: How does tokenization promote financial democratization?
A: By enabling fractional ownership and lowering investment minimums, more investors can participate in high-value assets like private credit or Treasury funds previously reserved for institutions.
The Road Ahead: Bridging Web2 and Web3 Finance
Domingo sees two major pathways for tokenized assets:
- Web2 products for Web3 users: Bringing traditional instruments like money-market funds into DeFi (e.g., BUIDL).
- Web3 capabilities for Web2 investors: Enabling mainstream investors to benefit from blockchain efficiency—fractional shares, instant settlements, automated dividends.
While the first wave focuses on crypto-native audiences, the second could unlock trillions in institutional capital. “The real opportunity,” Domingo said, “is bringing Web3 innovation to traditional investors—not just bringing old products to new users.”
As regulatory clarity improves and infrastructure matures, tokenization could redefine how value moves across global markets. With backing from Wall Street titans and a clear compliance roadmap, Securitize is positioning itself as a foundational player in this transformation.
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