When looking at RWA projects, it’s important to distinguish the value of assets on a platform from the platform’s revenue. Securitize’s third-quarter results, disclosed on November 9, offer a useful comparison: average tokenized assets for the quarter reached $5 billion, up 39% year over year, while revenue for the same period was $18.6 million, up 13%.
The $5 billion represents the value of assets on the platform—not the company’s revenue or profit. Also note the reporting date: at the end of September, tokenized assets stood at $4.8 billion, up 9% year over year. The 39% growth in the quarterly average should not be applied directly to the quarter-end figure.
Profitability also needs to be assessed separately. The company posted an adjusted EBITDA loss of $2 million this quarter, compared with positive adjusted EBITDA of $3.6 million in the same period last year. This metric is adjusted and should not be treated as net profit.
In future financial reports, I’d be most interested to see whether bringing assets on-chain can consistently generate service revenue, and whether costs remain in line. When evaluating RWA, looking at asset value, revenue, and profitability together is more useful than focusing only on a new high in asset value.
Risk warning: Business growth does not guarantee that a stock or related tokens will rise. Investors should still assess valuation and liquidity.
Binance Wallet invitation code: MOLLY666
The $5 billion represents the value of assets on the platform—not the company’s revenue or profit. Also note the reporting date: at the end of September, tokenized assets stood at $4.8 billion, up 9% year over year. The 39% growth in the quarterly average should not be applied directly to the quarter-end figure.
Profitability also needs to be assessed separately. The company posted an adjusted EBITDA loss of $2 million this quarter, compared with positive adjusted EBITDA of $3.6 million in the same period last year. This metric is adjusted and should not be treated as net profit.
In future financial reports, I’d be most interested to see whether bringing assets on-chain can consistently generate service revenue, and whether costs remain in line. When evaluating RWA, looking at asset value, revenue, and profitability together is more useful than focusing only on a new high in asset value.
Risk warning: Business growth does not guarantee that a stock or related tokens will rise. Investors should still assess valuation and liquidity.
Binance Wallet invitation code: MOLLY666
