Real-world assets like real estate, art, and company equity have always been valued for their potential to generate wealth. However, they also come with inherent challenges that can hinder their liquidity and management.

Tokenization presents a modern solution to these age-old problems. By converting physical assets into digital tokens on a blockchain, tokenization allows these assets to be divided into smaller, more manageable shares that can be easily bought, sold, or traded. This process opens investment opportunities to a broader audience by lowering entry barriers and providing greater transparency and security.

Securitize is a platform that leverages the power of blockchain technology to provide tools for tokenizing assets and managing digital securities.

What is Tokenization?

Tokenization is a process by which real-world assets are converted into digital tokens on a blockchain. These tokens represent ownership or a share in the underlying asset, whether real estate, art, or company equity.

Benefits of Tokenization for Businesses

Tokenization opens up new avenues for capital raising by allowing businesses to sell fractional ownership in their assets. It can lower entry barriers for investors, increase liquidity, and streamline the investment process.

Benefits of Tokenization for Investors

For investors, tokenization provides access to a broader range of investment opportunities, often with lower minimum investment thresholds. It also offers enhanced liquidity and the potential for a more diversified portfolio.

Real-World Examples

Tokenized assets can range from commercial real estate properties to fine art collections. For instance, a commercial building could be tokenized, allowing investors to purchase tokens that represent a share of the property. This would enable them to earn a portion of the rental income and benefit from any appreciation in the property’s value.

What is Securitize?

Source: Securitize Website

Securitize is designed to revolutionize how businesses raise capital and investors participate in the market. Securitize provides a secure and compliant way for assets to be tokenized and for these digital securities to be managed throughout their lifecycle. This innovative capital formation and investment management approach sets Securitize apart in the real-world asset tokenization industry.

Features of Securitize

Securitize’s platform is engineered with a range of features that cater to the evolving needs of the modern financial ecosystem:

• Tokenization Platform: Securitize’s robust tokenization platform is at the heart of its offerings. This platform allows for the seamless conversion of real-world assets into digital tokens. This process is designed to be secure, compliant, and efficient, ensuring asset owners can confidently tokenize their holdings.
• Compliance Framework: Understanding the importance of regulatory compliance, Securitize has developed a comprehensive framework that adheres to the relevant securities laws and regulations. This framework is built into every platform aspect, from token creation to trading, providing peace of mind for all users.
• Investor Dashboard: Investors can access a user-friendly dashboard that comprehensively views their investments. This dashboard includes tools for portfolio management, performance tracking, and accessing liquidity options.
• Marketplace Integration: Securitize integrates with various secondary marketplaces, allowing investors to trade digital securities and access liquidity. This feature is crucial for creating a vibrant ecosystem where tokens can be bought and sold freely.
• Automated Dividends and Distributions: The platform automates distributing dividends and other payments to token holders. This automation ensures accuracy and timeliness in payments, enhancing investor experience.
• Cap Table Management: Issuers must maintain an accurate cap table. Securitize’s platform provides real-time cap table management tools, ensuring that all transactions are reflected accurately and promptly.
• Global Reach: With a focus on inclusivity, Securitize’s platform is designed to operate across borders, allowing for a global pool of investors and issuers to participate in the tokenization market.

Team Behind Securitize

Securitize’s success is driven by its leadership team, a group of seasoned industry leaders who bring a wealth of experience and expertise to the table.

• Carlos Domingo is the CEO and Co-founder of Securitize. With a vision to transform the financial industry through blockchain technology, Carlos leads the company with a focus on innovation and compliance.
• Jamie Finn serves as the President and Co-founder. Jamie’s role is pivotal in shaping the strategic direction of Securitize and ensuring that the company remains at the forefront of the digital securities space.
• David Hunt holds the position of CEO & CCO at Securitize Markets. His extensive experience in financial markets guides Securitize’s approach to creating a compliant and user-friendly trading environment.

How Does Securitize Work?

Platform Functionality

Securitize’s platform is designed to be intuitive and user-friendly, allowing asset owners to tokenize their assets with ease. The process begins with creating a digital security representing a share of the underlying asset. These digital securities are then issued on the blockchain, where investors can buy and sell them.

The platform also provides tools for managing these securities throughout their lifecycle, including automated compliance checks, dividend distributions, and cap table management.

Raising Capital through Tokenization

For businesses looking to raise funds, tokenization offers a novel approach. By tokenizing their assets, they can divide them into smaller shares that can be sold to investors as digital securities. This simplifies the fundraising process and broadens the potential investor base. Through Securitize’s platform, issuers can reach a global audience of investors, streamline the investment process, and provide liquidity options that were previously unavailable.

Blockchain’s Role in Security

By leveraging blockchain technology, Securitize ensures that all transactions are secure, transparent, and immutable. The blockchain acts as a decentralized ledger that records every transaction, making altering or falsifying records virtually impossible. This level of security is crucial in building trust with investors and maintaining compliance with regulatory standards.

Securitize Products

Securitize has developed a suite of products designed to cater to the diverse needs of its users, ranging from individual investors to financial advisors and businesses. Here’s an overview of their offerings:

Securitize Invest

Source: Securitize Website

Securitize Invest is a product designed for individual investors interested in digital securities. Here’s a closer look at what it offers:

• Ease of Access: The platform provides a gateway for investors to easily purchase and trade digital securities. With a user-friendly interface, Securitize Invest simplifies investing in tokenized assets.
• Diverse Investment Opportunities: Investors can access a wide array of tokenized assets, from real estate to private equity. This diversity allows investors to build a portfolio that aligns with their investment goals and risk tolerance.
• Liquidity Options: One of the key advantages of digital securities is the potential for increased liquidity. Securitize Invest connects with secondary markets, offering investors options to sell their holdings, potentially faster than traditional investments.
• Transparency and Security: Leveraging blockchain technology, all transactions on Securitize Invest are transparent and secure. Investors can trust that their investments are recorded accurately and are tamper-proof.
• Regulatory Compliance: Securitize ensures that all investments made through its platform are compliant with relevant securities laws, providing peace of mind for investors who may be new to the space.

Securitize for Advisors

Source: Securitize Website

Securitize for Advisors is tailored to meet the needs of financial advisors, enabling them to incorporate digital securities into their clients’ portfolios. Here are the key features and benefits:

• Portfolio Integration: Advisors can seamlessly integrate digital securities into their clients’ investment portfolios, offering a modern diversification and asset allocation approach.
• Compliance Tools: The platform comes equipped with compliance tools that help advisors adhere to regulatory requirements and ensure that all investment activities are conducted within legal boundaries.
• Client Management: With a dedicated dashboard, advisors can manage their clients’ investments, track performance, and provide personalized advice based on real-time data.
• Educational Resources: Securitize provides educational materials to help advisors understand the nuances of digital securities and blockchain technology, empowering them to offer informed guidance to their clients.
• Market Access: Advisors gain access to a broad range of tokenized assets, allowing them to offer unique investment opportunities that may enhance client portfolios.

Securitize for Business

Source: Securitize Website

Securitize for Business is a comprehensive solution for companies seeking to leverage the power of tokenization to raise capital. It streamlines the fundraising process and provides access to a global pool of investors. Here is an in-depth look at its offerings:

• Capital Raising: The platform simplifies the process of raising funds by enabling businesses to tokenize their assets and offer them as digital securities to a global pool of investors.
• Investor Reach: By using Securitize, businesses can tap into a wider investor base, including those who may have been previously inaccessible due to geographical or financial barriers.
• Streamlined Process: From issuance to management, Securitize streamlines every step of the tokenization process, making it more efficient and less time-consuming for businesses.
• Regulatory Compliance: Securitize ensures that all tokenized securities are compliant with the relevant securities laws, reducing the regulatory burden on businesses and mitigating risk.
• Marketplace Integration: The platform connects with secondary markets, giving businesses the potential for increased liquidity for their digital securities.

Securitize Earn

Securitize Earn is the latest product offering from Securitize, designed to provide investors with opportunities to generate yield on their digital securities investments. This product is designed to provide additional income streams for investors through staking and other yield-generating activities. Here are the key aspects:

• Yield Generation: Investors can participate in staking and other yield-generating activities, earning returns on their investments beyond traditional appreciation.
• Diversified Income Streams: Securitize Earn offers various income generation options, catering to different risk profiles and investment strategies.
• Easy to Use: The platform is user-friendly, making it simple for investors to engage in yield-generating activities without extensive knowledge of complex financial instruments.
• Security and Transparency: Utilizing blockchain technology, Securitize Earn ensures that all yield-generating activities are secure and transparent, providing investors with peace of mind.
• Compliance: As with all Securitize products, regulatory compliance is a priority, ensuring that all activities within Securitize Earn adhere to the necessary financial regulations.

Investments on Securitize

Securitize offers a diverse range of investment opportunities through its platform. Here’s a closer look at the investment process:

Types of Investments on Securitize

Source: Securitize Website

Investors can choose from various tokenized assets, including real estate, private equity, venture capital, and more. These investments were traditionally available only to institutional or accredited investors but are now accessible to a wider audience through tokenization. Here are some of the investment plans available:

• BlackRock USD Institutional Digital Liquidity Fund (BUIDL): This is the first tokenized fund issued on a public blockchain by BlackRock, the world’s largest asset manager. It falls under the private fund asset class with a minimum investment of $5M for qualified purchasers, offering instant redemptions.
• Senior Credit Opportunities Feeder Fund: An evergreen private credit fund seeking risk-adjusted returns and attractive floating cash yield. It’s classified under senior credit with a minimum investment of $10k for qualified purchasers, featuring on-demand redemptions.
• Health Care Growth II Feeder Fund: A private equity fund focusing on healthcare growth, requiring a minimum investment of $20k from qualified purchasers and a 12-month lock-up period.
• Arca U.S. Treasury Fund: This fund offers yield derived from a portfolio of U.S. Treasury securities. It’s accessible to retail investors with a minimum investment of $1k and is listed under the 40 Act by the SEC.

How to Invest in Tokenized Assets on Securitize

Investing in tokenized assets through Securitize is designed to be a straightforward and accessible process. Here’s how you can get started:

• Account Creation and ID Verification: The first step is to create your Securitize account. The platform has made it easy to sign up and verify your identity, which can be completed in just a few minutes. This step ensures that all users meet the necessary KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements.
• Selecting Investments: Once your account is set up, you can explore the curated investment offerings on Securitize. These offerings start at a minimum investment of $500, making it possible for a wider range of investors to participate in private equity funds, VC funds, and other exclusive opportunities.
• Funding and Finalizing Investment: After choosing an investment, you can fund your Securitize account using various methods. Once funded, you can finalize your investment and start managing your holdings. The platform provides tools and features that allow you to track your investments and make informed decisions whenever you choose.

How to Redeem Investments on Securitize

Redeeming investments on Securitize is a process that allows investors to exit their positions and liquidate their tokenized assets. Here’s an overview of the redemption process:

• Initiating Redemption: When you decide to redeem your investment, you can initiate the process directly through the Securitize platform. The platform’s interface is designed to make this step as seamless as possible.
• Understanding Terms and Conditions: Each investment may have specific terms and conditions regarding redemptions, such as lock-up periods, notice periods, and redemption fees. It’s important to review these details before proceeding.
• Selling Tokens: Depending on the asset, you may have the option to sell your tokens on secondary markets or back to the issuer. Securitize facilitates this process by providing access to its integrated exchanges and marketplaces.
• Receiving Funds: After successfully selling your tokens, the proceeds will be transferred to your linked bank account or digital wallet, depending on your preference and the available options.

Managing Your Portfolio

Effective portfolio management is crucial for achieving long-term investment goals. Securitize provides a suite of tools and features to help investors manage their portfolios.

Tools and Features for Portfolio Management

Securitize’s platform offers a dashboard where investors can view their holdings, track performance, and analyze returns. The platform also provides detailed reports and analytics to help investors understand the impact of their investments. Additionally, investors can set up alerts and notifications to stay informed about significant events or changes in their portfolio.

Best Practices for Monitoring and Adjusting Investments

Staying proactive is key to successful portfolio management. Investors should regularly review their portfolios to ensure alignment with their investment objectives. This includes monitoring market trends, evaluating asset performance, and considering diversification strategies. When necessary, investors may need to adjust their holdings by buying or selling assets to optimize their portfolio’s performance.

Securitize Fundraising Journey

Securitize has had a notable fundraising journey, attracting significant investment to fuel its growth. Over time, Securitize has raised a total of $149 million. This includes various rounds of funding, one of the notable rounds being a Series B fundraising that raised $48 million, co-led by Morgan Stanley and Blockchain Capital.

The company has garnered support from a diverse group of investors. Notable names include Aptos Labs, BlackRock, Circle Ventures, Hamilton Lane, and ParaFi Capital. These investors are among 66 who have backed Securitize’s vision. Additionally, a recent funding round in May 2024 was led by BlackRock, with participation from Hamilton Lane, ParaFi Capital, and Tradeweb Markets.

Conclusion

Securitize offers a platform that simplifies the investment process in private markets. With an easy-to-use interface for account setup, a curated selection of investment opportunities, and a minimum investment threshold, Securitize allows more individuals to participate in private equity and venture capital funds.

The platform’s redemption process and portfolio management tools give investors flexibility and control over their investments. As Securitize continues to innovate and expand its offerings, it remains a pivotal player in democratizing access to tokenized assets and shaping the future of investment.