TLDR
- Securitize is going public through a SPAC merger with Cantor Equity Partners II at a $1.25 billion valuation
- The company will trade on Nasdaq under ticker symbol “SECZ” and plans to tokenize its own shares on blockchain
- Securitize expects to raise $469 million in proceeds from the deal and a private placement
- The firm operates BlackRock’s $2.8 billion BUIDL fund and has tokenized $4 billion in assets
- Existing investors including BlackRock, ARK Invest, and Morgan Stanley will roll their equity into the combined company
Securitize announced plans to go public through a merger with Cantor Equity Partners II. The deal values the tokenization firm at $1.25 billion.
The company will trade on Nasdaq under the ticker symbol “SECZ” once the transaction closes. Securitize also plans to issue digital versions of its stock on blockchain.
Securitize expects to raise up to $469 million from the merger. The funds will come from Cantor Equity Partners II’s trust account and a private placement in public equity.
The private placement will bring in new investors including Arche, Borderless Capital, Hanwha Investment & Securities, InterVest, and ParaFi Capital. Citi and Cantor will serve as co-placement agents for the transaction.
Existing investors will roll their full equity stakes into the combined company. These backers include BlackRock, ARK Invest, Morgan Stanley Investment Management, Blockchain Capital, Hamilton Lane, and Jump Crypto.
Cantor Equity Partners II is affiliated with the firm linked to U.S. Secretary of Commerce Howard Lutnick. The SPAC’s stock price fell 7% on Tuesday to $11.93 following the announcement.
Securitize’s Tokenization Platform
Securitize provides a platform for companies to manage real-world assets on blockchain. The firm tokenizes stocks and money market funds.
The company helped BlackRock launch its USD Institutional Digital Liquidity Fund in March 2024. The BUIDL fund has grown to $2.8 billion and was the first institutional onchain Treasurys product to cross $1 billion.
Securitize’s platform currently underpins $22 billion worth of real-world assets. The firm has directly tokenized upwards of $4 billion in assets.
The entire tokenized Treasurys market is valued at over $8.5 billion today. This represents a small portion of the broader real-world asset economy.
Securitize estimates a $19 trillion opportunity in tokenization across equities, fixed income, and alternative assets. Citi analysts project the tokenization sector could reach $5 trillion by the end of the decade.
Path to Public Markets
Securitize CEO Carlos Domingo told reporters that Circle’s IPO in June provided motivation for the move. The company has been working to become profitable.
“We’ve built a real company with 230 employees, revenue, growth, and profits,” Domingo said. “We’re just scratching the surface of what the industry is.”
Domingo described having a large balance sheet as an opportunity to consolidate the industry. This approach avoids being acquired by a larger firm.
The firm has registered with the SEC as a transfer agent, broker-dealer, alternative trading system, investor advisor, and fund administrator. This vertical integration makes it the first company to hold all these registrations.
Last month, Securitize reached an agreement with FG Nexus to issue tokenized stock on Ethereum. FG Nexus is a Nasdaq-listed Ethereum treasury firm.
The public debut will likely happen early next year. The timing depends on the regulatory process and when the U.S. government shutdown ends.
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