The world's largest asset manager, BlackRock, continues to expand its footprint in the blockchain space by leading a $47 million funding round for Securitize, a prominent tokenization platform. This strategic move reinforces BlackRock's commitment to digital asset innovation and marks another milestone in its growing partnership with Securitize.
BlackRock and Securitize: A Growing Partnership
BlackRock and Securitize have collaborated previously, most notably on the launch of BlackRock's first tokenized fund—the BlackRock USD Institutional Digital Liquidity Fund—in March 2024. This fund provides qualified investors with a new avenue to earn US dollar yields through blockchain-based securities.
Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, emphasized the transformative potential of tokenization:
"We believe that tokenization has the potential to drive a significant transformation in capital markets infrastructure. Our investment in Securitize is another step in the evolution of our digital assets strategy."
Chalom has now joined Securitize’s board of directors, further solidifying the relationship between the two firms.
Other Investors in the Funding Round
The $47 million funding round also included participation from:
- Hamilton Lane
- ParaFi Capital
- Tradeweb Markets
Hamilton Lane, a private markets investment firm, previously tokenized one of its equity funds on Polygon through a Securitize feeder fund in January 2023.
The Rise of Tokenization in Traditional Finance
Tokenization—the process of converting real-world assets into blockchain-based digital tokens—has gained traction among fintech firms and traditional finance giants. Proponents argue that blockchain technology can enhance transparency, reduce costs, and improve liquidity in capital markets.
BlackRock CEO Larry Fink has been a vocal advocate, calling tokenized securities "the next generation for markets."
👉 Discover how tokenization is reshaping finance
Key Benefits of Tokenization:
- Increased Efficiency: Streamlines settlement processes and reduces intermediaries.
- Enhanced Liquidity: Enables fractional ownership of traditionally illiquid assets.
- Improved Transparency: Blockchain provides immutable records of ownership and transactions.
FAQs About BlackRock’s Tokenization Strategy
Q: What is BlackRock’s first tokenized fund?
A: The BlackRock USD Institutional Digital Liquidity Fund, launched in March 2024, offers exposure to US dollar yields through blockchain-based shares.
Q: How does Securitize facilitate tokenization?
A: Securitize provides infrastructure for digitizing traditional assets, enabling compliance, trading, and custody solutions on blockchain networks.
Q: Why is tokenization gaining momentum?
A: Institutions recognize blockchain’s potential to modernize legacy systems, reduce costs, and unlock new investment opportunities.
Q: Who else is investing in tokenization?
A: Major players like Hamilton Lane, Circle, and Tradeweb Markets are actively exploring tokenized assets.
👉 Learn more about institutional adoption of blockchain
The Future of Tokenized Assets
As BlackRock deepens its involvement in tokenization, the broader financial ecosystem is expected to follow suit. With Securitize’s technology and BlackRock’s market influence, the collaboration could accelerate mainstream adoption of blockchain-based securities.
Key Takeaways:
- Tokenization is reshaping capital markets by improving efficiency and accessibility.
- BlackRock’s investment signals strong institutional confidence in digital assets.
- Partnerships like BlackRock-Securitize bridge traditional finance and blockchain innovation.
The convergence of traditional finance and decentralized technology continues to gain momentum, paving the way for a more inclusive and efficient financial future.