BlackRock-backed Securitize to list on NYSE as SECZ

Securitize, a tokenization specialist backed by BlackRock, will begin trading next week on the New York Stock Exchange under the ticker SECZ after completing a merger with Cantor Equity Partners II, a SPAC backed by Cantor Fitzgerald. The company said fewer than 30% of the SPAC’s common shares were redeemed, clearing the way for the closing and the start of trading.

The combination and a related private financing are expected to provide roughly $400 million in proceeds to Securitize ahead of the closing. Management has stated that the capital will be used to expand product offerings and support efforts to integrate tokenized securities into existing market infrastructure.

Founded in 2016, Securitize issues digital representations of real-world assets and provides infrastructure for institutional clients. As of June, the firm reported more than $4 billion in assets under management, with its largest client engagement servicing BlackRock’s tokenized money market product, valued at about $2.4 billion. Other institutions using Securitize’s technology include Apollo, BNY, Hamilton Lane and KKR.

CEO Carlos Domingo noted: “The idea that major institutions would embrace tokenized securities was still largely theoretical. Today, tokenization is moving into the mainstream, and we believe becoming a public company gives us the visibility, credibility, and capital to lead.”

Securitize advocates for so-called native tokenization, where securities are issued directly on a blockchain rather than being wrapped in digital shells. In March, the company reached an agreement with the NYSE to develop systems for blockchain-native securities.

Regulatory and market infrastructure developments are unfolding at the same time. The Securities and Exchange Commission delayed an innovation exemption for tokenized stocks, citing concerns about third-party issuers and potential effects on corporate actions and governance. The Depository Trust & Clearing Corporation has been exploring tokenization, and the SEC chair has described the technology as having the potential to transform markets. Executives at major asset managers have previously commented on tokenization’s market implications.

Securitize’s public listing will coincide with ongoing discussions among regulators, exchanges and infrastructure providers about how tokenized securities should be issued, traded and governed. The company’s entry to the NYSE will provide a public reference point for investor demand in firms focused on blockchain-based market plumbing.