Why Cathie Wood Just Invested Millions in Tokenization Platform Securitize

TLDR

• Cathie Wood’s ARK Venture Fund invested approximately $10 million in tokenization platform Securitize, representing 3.25% of the fund’s assets
• Securitize is the world’s leading real-world asset tokenization platform with over $4 billion in tokenized securities
• The investment makes Securitize the eighth largest position in ARK’s venture fund, which manages $325.3 million in net assets
• Securitize previously raised $47 million from institutional investors including BlackRock, Hamilton Lane, Morgan Stanley, and Tradeweb Markets
• The tokenized asset market has grown 112% to $33 billion year-to-date and could reach $18.9 trillion by 2033 according to Ripple and BCG projections

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Cathie Wood’s asset management firm ARK Invest has acquired a stake in Securitize, a leading tokenization platform. The investment was disclosed in the ARK Venture Fund’s latest filing dated September 30.

The fund allocated 3.25% of its assets to Securitize. Based on the fund’s $325.3 million in net assets under management, the investment is valued at approximately $10 million.

Securitize now ranks as the eighth largest holding in ARK’s venture fund. The position follows investments in artificial intelligence companies X.AI and Anthropic.

Securitize was founded in 2017 and operates as a platform for tokenizing real-world assets. The company has issued $4.6 billion in tokenized securities working with traditional finance firms.

The platform’s clients include BlackRock, Hamilton Lane, and Apollo. Securitize serves as the issuer for BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL.

The BUIDL fund leads the tokenized U.S. Treasury sector with $2.8 billion in assets. This represents the largest tokenized money market fund in the industry.

Tokenization converts traditional assets like stocks and bonds into digital tokens on blockchain networks. The process allows for fractional ownership and 24/7 trading of these assets.

Tokenization Market Growth

The tokenized asset market has expanded 112% to $33 billion year-to-date according to RWA.xyz data. Industry projections from Ripple and Boston Consulting Group estimate the market could reach $18.9 trillion by 2033.

Securitize also operates in equity tokenization. The firm created on-chain shares for wallet provider Exodus in 2022.

The company entered an agreement with FG Nexus to introduce common and preferred stock to the Ethereum blockchain. These initiatives demonstrate the platform’s expansion beyond traditional securities.

Previous Funding Rounds

Securitize raised $47 million in a funding round last year. The round was led by BlackRock and Hamilton Lane.

ParaFi Capital and Tradeweb Markets participated in the investment. ARK Invest joins this group of institutional backers with its recent stake.

Securitize CEO Carlos Domingo commented on the investment. He stated that ARK Invest’s strategic investment reflects growing conviction among institutional investors.

Cathie Wood’s firm maintains positions in several crypto-related companies. The portfolio includes stakes in Circle Internet Group, Coinbase, and Robinhood.

The ARK Venture Fund is a closed-end, actively managed fund. It invests in both public and private companies across various sectors.

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