According to Blockworks, BlackRock, the world's largest asset manager, is set to further its involvement in the tokenization sector. This follows its lead in a $47 million funding round for Securitize, a firm specializing in the tokenization of physical and traditional financial assets. The two companies have previously collaborated, with BlackRock launching its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund, in March. This fund offers an alternative method for earning US dollar yields and is available to qualified investors via Securitize Markets.
Tokenization has been gaining traction among fintech firms and traditional finance giants, who note that blockchain technology can enhance transparency and reduce costs. BlackRock's CEO, Larry Fink, has referred to tokenized securities as 'the next generation for markets.' Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, echoed this sentiment, stating that tokenization could significantly transform capital markets infrastructure. Chalom, who has now joined Securitize's board of directors, described the investment in Securitize as a step forward in BlackRock's digital assets strategy.
Other participants in the funding round included Hamilton Lane, ParaFi Capital, and Tradeweb Markets. Hamilton Lane, a private markets investment firm, had earlier in January 2023 made one of its equity funds available through a Securitize feeder fund tokenized on Polygon.