TL;DR
- Securitize Inc. launches Securitize Fund Services, expanding its offering after surpassing $1 billion in tokenized issuances.
- The new platform integrates services such as asset tokenization, primary market, secondary trading, and transfer agent services.
- The choice of the Wormhole Bridge for interoperability raises concerns about the security of assets following a previous incident involving a $323 million loss.
Securitize Inc., a leader in the tokenization of real assets, has announced the launch of its new fund administration services, known as Securitize Fund Services.
The launch comes after the company has surpassed the $1 billion mark in tokenized issuances on the blockchain. With this new offering, Securitize aims to address the inefficiencies that have characterized traditional fund administration processes, including the slow onboarding of investors and delays in the updating of net asset value (NAV).
Securitize is proud to announce the launch of Securitize Fund Services, expanding our platform with a comprehensive fund administration solution. 💼
This marks a significant step in offering a unified, end-to-end solution that combines primary marketplace, secondary trading via… pic.twitter.com/eneRfigzbM
— Securitize (@Securitize) October 31, 2024
The Securitize Fund Services platform offers a comprehensive solution that brings together a variety of services necessary for fund management. Among these are asset tokenization, a primary market for investors, secondary trading through a regulated alternative trading system (ATS), and transfer agent services. This integration aims not only to facilitate the issuance and redemption of tokenized securities but also to optimize the user experience by automating workflows using smart contracts.
The enhancement of the service aligns with the strategic collaborations that the company has established with major asset managers such as BlackRock, Hamilton Lane, and KKR. The firm has demonstrated its ability to attract key players in the financial sector who are interested in exploring new capital-raising opportunities and minimizing counterparty risks through blockchain-based solutions.
Securitize Raises Suspicions Following the Choice of Wormhole Bridge
The implementation of these services will provide institutional investors with a more efficient way to manage their assets, simplifying compliance processes, reporting, and investor relations. Carlos Domingo, CEO of Securitize, emphasized the importance of offering a unified platform that combines expertise in tokenization and fund management capabilities, ensuring comprehensive attention to clients’ needs.
However, Securitize’s choice to use the Wormhole Bridge as the interoperability provider for its tokenized assets has generated concerns in the community due to a previous security incident that involved a $323 million loss. This decision has raised questions about the reliability of the chosen solution and its impact on the security of tokenized assets
