Securitize to Launch on NYSE, Testing Wall Street's Interest in Tokenization

Securitize's NYSE Launch

Securitize is poised to begin trading on the New York Stock Exchange next week under the ticker "SECZ," following its merger with a special purpose acquisition company (SPAC). This launch marks a pivotal moment for the tokenization sector, providing insights into Wall Street's appetite for this innovative financial technology.

Affiliated with BlackRock, Securitize specializes in digital asset tokenization. The completion of its merger moved closer this week as investors holding less than 30% of shares in Cantor Equity Partners II chose to redeem their shares. The company anticipates raising around $400 million through the merger and related private funding before finalizing the deal.

CEO Carlos Domingo noted that Securitize's public listing signifies a transition of tokenization from a conceptual framework to an integral part of contemporary finance. He stated, “The notion that major institutions would adopt tokenized securities was mostly theoretical. Now, tokenization is entering the mainstream.” Domingo believes that going public will enhance the company's visibility, credibility, and access to capital needed for leadership in this sector.

In recent years, Securitize has forged significant partnerships, including with the largest asset manager globally for a tokenized money market fund set to launch in 2024. Other collaborations include firms such as Apollo, BNY, Hamilton Lane, and KKR. Earlier this year, Securitize also announced a partnership with the NYSE to develop infrastructure for blockchain-based securities.

The company currently manages over $4 billion in assets, with its largest product being BlackRock’s BUIDL, valued at $2.4 billion as of last week. Domingo advocates for "native" tokenization, emphasizing that securities should be issued directly on-chain to unleash their full potential.

While the SEC is currently deliberating on an innovation exemption for tokenized stocks, concerns over third-party issuers have delayed progress. SEC Chair Paul Atkins has expressed that tokenization could revolutionize markets through more efficient trading, echoing sentiments previously shared by BlackRock CEO Larry Fink during the crypto market downturn in 2022.