Why Blackrock invested $47 million in this RWA Tokenization Firm

BlackRock led a $47 million investment round for Securities, a firm focused on real world assets (RWA).

This strategic integration of capital, announced on May 1, is a significant step in the evolution of digital asset securities.

How to secure plans to use the $47 million in funding

Securitize uses this funding to expand product development, expand globally and leverage partnerships across the financial industry. Investors in this round include Hamilton Lane, Paraphy Capital and TradeWeb Markets, along with key players such as Aptos Labs, Circle and Paxos.

“In our view, the potential of blockchain technology to transform the future of finance in general – and tokenization in particular – is promising,” said Carlos Domingo, founder of Securitis.

Accordingly, Joseph Chalom, BlackRock's Global Head of Strategic Ecosystem Partnerships, will become a member of Securitize's Board of Directors.

“At BlackRock, we believe tokenization has the potential to revolutionize the capital market infrastructure. Our investment in securities is another step in the development of our digital assets strategy,” said Chalom.

In March, BlackRock partnered with Securities to launch the first tokenized fund on Ethereum, the BlackRock USD Institutional Digital Liquid Fund (BUIDL). This fund offers a stable price of $1 per token and distributes dividends directly to investors' wallets as new tokens every month.

Investing primarily in cash, US Treasury bills and repurchase agreements, the fund aims to provide yield by maintaining liquidity on the blockchain.

Importantly, BUIDL has been issued by the world's largest treasury fund on the blockchain since May 1, according to BeenCrypto. It surpassed Franklin Templeton's Franklin Onchain US Treasury by market capitalization.

Since launching six weeks ago, BUIDL has quickly attracted market attention, with its market capitalization rising to $375 million from $274 million in April.

This increase is consistent with a broader trend toward higher yielding debt-based investments. In the year As of April 26, the total value locked up in real-world assets held by the token reached $8 billion, a nearly 60% increase since February.

These statistics exclude fiat-backed stablecoins and cover a variety of assets, including commodities, securities, and real estate tokenization protocols.