Securitize Inc., a platform specializing in real-world asset tokenization, has introduced a new fund administration service called Securitize Fund Services.
The platform announced this development after surpassing $1 billion in tokenized assets on the blockchain, according to a company release.
Tokenization allows traditional assets, such as real estate or stocks, to be converted into digital tokens, making them accessible on the blockchain. This process can make managing and trading these assets more efficient by offering transparency, security, and real-time updates.
https://twitter.com/Securitize/status/1851980041032208485
Securitize’s platform is designed to support institutional investors from both traditional finance and decentralized finance firms looking to manage assets on-chain.
The new Securitize Fund Services aims to address gaps in traditional fund administration, specifically in processes like investor onboarding and calculating fund net asset value, according to the release.
Earlier in October, Securitize integrated Zero Hash to help qualified investors subscribe to BlackRock’s tokenized fund using the USDC (USDC) stablecoin. Through this partnership, institutional investors could purchase the BlackRock USD Institutional Digital Liquidity Fund, with Zero Hash handling the conversion to U.S. dollars.
TradFi incentives
With Securitize Fund Services, institutional clients, including private equity firms and investment managers, gain a more streamlined approach to managing tokenized assets, from capital raising to secondary trading.
By consolidating these services on a single platform, Securitize seeks to address challenges in traditional fund administration, such as slow investor onboarding and delayed reporting.
For instance, with smart contracts—automated programs on the blockchain—tasks like issuing tokens and tracking fund performance are faster and more accurate.
Securitize partnerships
According to the release, Securitize has secured partnerships with major asset managers, including BlackRock and Hamilton Lane, who are prominent players in traditional finance. This interest is partly due to blockchain’s flexibility, which can enhance liquidity through faster transactions on secondary markets and allow real-world assets to integrate with decentralized finance protocols.
Securitize aims to advance the real-world asset space, making it easier for institutions to adopt blockchain technology for secure and transparent asset management and trading.
Read the full article here