Tokenization of real-world assets is growing fast. Two blockchain-focused companies are making it easier for institutions to get involved.
Jump Crypto, a digital asset arm of Jump Trading, has invested in Securitize. This Miami-based company brings real-world assets like Treasurys onto blockchains. The deal’s details are not shared.
This is Securitize’s first outside investment since BlackRock’s $47 million investment last year. It made Securitize a key player in the tokenization market. Other big names like Apollo and Hamilton Lane have also partnered with Securitize.
These partnerships are not just about crypto. They involve mainstream products like Treasurys and private credit on blockchains like Ethereum and Solana.
BlackRock’s BUIDL fund is a big deal in tokenization. It’s a money market fund that manages $2.86 billion. Since its launch, tokenized Treasury products have grown 800% to nearly $7 billion.
Michael Sonneshein, Securitize’s COO, sees this investment as a sign of confidence. He believes tokenization is changing capital markets and making investments more accessible.
Tokenization offers benefits that traditional formats don’t. For example, BUIDL pays daily dividends. Investors are choosing tokenized Treasurys over stablecoins because they share yield.
Jump Crypto will help Securitize expand its role in collateral management and trading. The tokenization sector is booming, with RWAs growing from $9 billion to $22.4 billion since BUIDL’s launch.
The SEC will host a roundtable on tokenization soon. Boston Consulting Group predicts the tokenized asset market will reach $19 trillion by 2033.
Securitize is also working on a new blockchain called Converge. It’s a compliant gateway for institutions to enter DeFi. Converge is set to launch later this quarter.