ARK Invest Takes $10M Stake in Tokenization Firm Securitize
ARK Invest, led by CEO Cathie Wood, has invested in Securitize, a company specializing in tokenization, through its ARK Venture Fund (ARKVX). This move aligns with Wall Street's trend of bringing assets on-chain.
- ARKVX holds a 3.25% stake in Securitize, making it the fund's eighth largest position.
- The investment is approximately valued at $10 million, based on the fund's $325.3 million net assets as of September 30.
- Tokenization is rapidly growing in crypto, converting traditional financial instruments to blockchain-based assets.
- The tokenized asset market has increased by 112% to reach $33 billion year-to-date and could grow to $18.9 trillion by 2033, as projected by Ripple and BCG.
Securitize, established in 2017 and led by CEO Carlos Domingo, has issued $4.6 billion in tokenized assets, partnering with finance giants like BlackRock and Apollo.
- It leads the tokenized U.S. Treasury sector with BlackRock's USD Institutional Digital Liquidity Fund, holding $2.8 billion in assets.
- Securitize is also involved in equity tokenization and has created on-chain shares for companies such as Exodus and FG Nexus (FGNX) on the Ethereum blockchain (ETH).
This investment follows Securitize's $47 million fundraising round last year, backed by BlackRock, Hamilton Lane, ParaFi Capital, and Tradeweb Markets.