Securitize CEO on BlackRock's First Tokenized Fund

Bloomberg Television

15 May 202403:46

Summary

TLDRSecuritize, led by CEO Carlos Domingo, has secured $47 million in funding from BlackRock, marking a significant step in private market tokenization. This initiative has quickly become the largest tokenized Treasury fund, demonstrating strong demand and diverse applications, including on-chain Treasury management and collateral use for trading. Domingo emphasizes the project's regulatory compliance, asserting that the tokens issued are clearly classified as securities. As the fund seeks to expand its reach, it aims to attract more institutional investors while navigating the evolving regulatory landscape surrounding tokenized assets.

Takeaways

💰 Securitize has secured $47 million in funding led by BlackRock, marking a significant milestone in private market tokenization.
📈 The fund has quickly become the largest tokenized Treasury fund in history within two months of its launch.
🚀 Carlos Domingo, CEO of Securitize, emphasizes the long journey since 2018 to develop the necessary technology and regulatory licenses.
🔍 There is high demand for the fund, and Domingo believes it will continue to grow as more institutions learn about it.
🎟️ The fund's ticker symbol, BIDDLE, cleverly references the crypto term 'Hodl,' appealing to the crypto community.
🏢 Adoption of the fund is occurring in three main areas: on-chain Treasury management, derivative products, and collateral for trading.
⚖️ Domingo clarifies that the tokenized assets are classified as securities, adhering to SEC regulations.
🔒 Securitize operates as a registered transfer agent, ensuring compliance with all relevant regulations.
🤝 BlackRock's involvement as a shareholder and board member is a crucial step for Securitize's growth.
📊 Domingo believes the current achievements are just the beginning, with substantial potential for future expansion.

Q & A

What recent funding has Securitize secured, and who led this funding?
-Securitize has secured $47 million in funding led by BlackRock.
What is notable about the tokenized Treasury fund launched by Securitize?
-It has become the largest tokenized Treasury fund in less than two months since its launch.
What has been Securitize's journey since 2018?
-Securitize has been working on tokenization since 2018, focusing on getting the technology right and obtaining necessary licenses.
How does Carlos Domingo describe the current project with BlackRock?
-He describes it as significant and believes it will be the largest and fastest-growing tokenized funding in history.
What demand is Securitize experiencing for its fund?
-The demand is expected to grow significantly, as the project is still in its early stages and requires broader awareness.
What is the ticker symbol for the fund, and what does it signify?
-The ticker symbol is BIDDLE, which plays on the term 'Hodl' popular in the crypto community.
What three directions is Securitize seeing adoption for the fund?
-Adoption is seen in on-chain Treasury management, building derivative products, and using it as collateral for trading.
What regulatory challenges does Securitize face regarding tokenized assets?
-While there are regulatory challenges in the crypto space, Securitize's tokens are classified as securities and are regulated, following the necessary rules.
How does Securitize ensure compliance with regulatory bodies?
-Securitize operates as a registered transfer agent and works through a broker-dealer, adhering to regulations from the SEC and other authorities.
What concerns do critics have regarding tokenized products in the crypto space?
-Critics are concerned about whether tokens issued are securities or commodities, particularly in relation to regulatory scrutiny.