BlackRock Leads Funding Round for Securitize with Focus on Tokenization

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As a crypto investor with a few years of experience under my belt, I can’t help but be excited about BlackRock’s recent moves into the world of tokenization. With a total asset management worth of $10 trillion, BlackRock is a financial giant that carries significant weight in the industry. Their decision to invest in Securitize and join forces to launch their first tokenized fund is a clear indication that they see potential in this emerging technology.

BlackRock, a prominent financial institution based in New York with over $10 trillion in managed assets, recently took the lead in financing Securitize, a company specializing in tokenizing real-world assets.

BlackRock’s Joseph Chalom has also become part of Securitize’s board of directors. 

This year, Securitize teamed up with Larry Fink’s company to introduce their initial tokenized fund based on Ethereum blockchain technology.

According to U.Today’s report, Fink expressed his belief that tokenization is set to become a major trend in the cryptocurrency world in his recent investor letter.

In simple terms, tokenization is a modern method used in finance for transforming tangible assets into equivalent digital tokens, leveraging blockchain technology. This innovation brings about significant improvements in capital markets’ efficiency and broadens accessibility.

BlackRock created a big splash this year with the debut of its highly successful Bitcoin exchange-traded fund, setting a new record. Although the fund has seen decreasing investments recently, it continues to be a significant achievement.

As a researcher studying the digital asset landscape, I’ve come across Robert Mitchnick’s recent admission that demand for Ethereum and other alternative coins (altcoins) has been relatively low compared to Bitcoin at BlackRock. Consequently, they have chosen to prioritize their efforts on Bitcoin.

To put it simply, BlackRock’s latest investment in Securitize is another indication of their growing interest in tokenization. As Chalom from BlackRock shared with Fortune, this move is part of their broader approach to the digital asset sector.

As a financial analyst, I can tell you that I’ve observed BlackRock’s recent entry into the tokenization market, joining the ranks of other major financial players making moves in this space. Specifically, last November, JPMorgan, a prominent US banking institution, unveiled its own tokenization platform.

In April, according to Moody’s credit rating agency, the expansion of tokenization relies on the advancement of secondary markets powered by blockchain technology.

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2024-05-01 19:15