TLDR
- ARK Venture Fund invested approximately $10 million in Securitize, making it the fund’s eighth largest holding at 3.25% of total assets
- Securitize has tokenized over $4 billion in securities and operates BlackRock’s $2.8 billion BUIDL money market fund
- The tokenized asset market grew 112% to $33 billion in 2024 and could reach $18.9 trillion by 2033
- Securitize previously secured funding from BlackRock, Hamilton Lane, Morgan Stanley, and Tradeweb Markets in a $47 million round
- ARK Invest’s portfolio includes other crypto companies like Circle, Coinbase, and Robinhood
Cathie Wood’s ARK Invest has entered the tokenization space with a $10 million investment in Securitize. The stake was revealed in the ARK Venture Fund’s September 30 disclosure filing.
The investment represents 3.25% of the fund’s total assets. With $325.3 million in net assets under management, ARK’s position in Securitize is valued at roughly $10 million.
Securitize ranks as the eighth largest holding in the ARK Venture Fund. The investment places the tokenization firm behind AI companies X.AI and Anthropic in the fund’s portfolio.
What is Securitize?
Securitize was founded in 2017 as a real-world asset tokenization platform. The company has processed $4.6 billion in tokenized securities for major financial institutions.
The firm’s client list includes BlackRock, Hamilton Lane, and Apollo. Securitize operates as the issuer for BlackRock’s USD Institutional Digital Liquidity Fund.
BlackRock’s BUIDL fund holds $2.8 billion in assets. This makes it the largest tokenized money market fund in the market.
Tokenization converts traditional financial assets into digital tokens on blockchain networks. This technology enables fractional ownership and continuous trading of stocks, bonds, and funds.
The tokenized asset market has grown 112% to $33 billion year-to-date. Data from RWA.xyz tracks this expansion across various asset classes.
Tokenization Market Projections
Ripple and Boston Consulting Group project the tokenized asset market will reach $18.9 trillion by 2033. This forecast reflects increasing institutional adoption of blockchain technology.
Securitize also tokenizes equity securities. The platform created on-chain shares for Exodus, a cryptocurrency wallet provider, in 2022.
The company signed an agreement with FG Nexus to tokenize common and preferred stock. These shares will exist on the Ethereum blockchain.
Last year, Securitize completed a $47 million funding round. BlackRock and Hamilton Lane led the investment.
ARK’s Crypto Portfolio Strategy
ParaFi Capital and Tradeweb Markets joined as participants in the funding round. ARK Invest now joins this group of institutional investors backing the tokenization platform.
Securitize CEO Carlos Domingo responded to the investment. He said the move shows growing conviction among institutional investors about tokenization’s future in capital markets.
ARK Invest maintains positions in multiple cryptocurrency companies. The firm holds stakes in stablecoin issuer Circle Internet Group.
Wood’s fund also owns shares in Coinbase and Robinhood. These investments align with ARK’s focus on disruptive financial technologies.
The ARK Venture Fund operates as a closed-end, actively managed fund. It invests in both publicly traded and private companies across technology sectors.
