Securitize, a U.S.-based tokenization platform known for facilitating major on-chain real-world asset (RWA) initiatives, has announced its intention to become a publicly traded company. This will be achieved through a merger with Cantor Equity Partners II (Nasdaq: CEPT), a special purpose acquisition company, which values Securitize at $1.25 billion. This development positions Securitize to be the first publicly traded firm exclusively focused on tokenized securities.
The merger agreement includes a $225 million private investment in public equity (PIPE). This PIPE is being led by prominent investors such as Arche, Borderless Capital, Hanwha Investment & Securities, InterVest, and ParaFi Capital. Existing investors, including BlackRock and Morgan Stanley, are also participating in this round.
Shareholders of Securitize, which include notable firms like ARK Invest and Hamilton Lane, will transfer their entire stakes into the newly formed public entity. This new company is slated to be listed on the Nasdaq stock exchange under the ticker symbol SECZ.
Carlos Domingo, CEO of Securitize, stated that following the listing, the company intends to tokenize its own equity. This would be a pioneering move for a public issuer, serving as a demonstration of how securities trading can transition entirely onto the blockchain.
Currently, Securitize operates as a regulated broker-dealer, a transfer agent, and an alternative trading system. The firm provides support for the tokenization of various financial instruments, including funds, equities, and fixed-income assets.
Since its inception in 2017, Securitize has been instrumental in tokenizing over $4 billion in assets. Notable examples include BlackRock’s BUIDL U.S. Treasury fund and KKR’s Health Care Strategic Growth Fund II, both of which represent significant advancements in institutional adoption of blockchain technology.
This planned initial public offering builds upon Securitize's existing relationships with major financial players like Apollo and VanEck, further propelling the adoption of tokenization within mainstream finance.
ARK Invest Strengthens Support for Securitize Ahead of Public Listing
The announcement of the public listing follows closely on the heels of ARK Invest significantly increasing its stake in Securitize. In a recent investment, ARK Invest injected $10 million into the company, making Securitize its eighth-largest holding within ARK’s Venture Fund.
This latest investment, coupled with prior backing from institutions like BlackRock and ParaFi, has served to bolster institutional confidence in Securitize's tokenization framework and its strategic direction.
The impending IPO and ARK Invest's renewed commitment underscore a growing belief in the potential of tokenization. Securitize itself estimates the market for tokenized assets to be worth $19 trillion. The company's intention to tokenize its own equity will serve as a crucial test case, examining the compatibility of blockchain transparency with established public market regulations.