Image Credit: Securitize.com
Tokenization company Securitize has expanded its regulated U.S. business. Its subsidiary, Securitize Capital LLC, has registered with the Securities and Exchange Commission as an investment adviser.
The registration took effect on July 22, three weeks after Securitize began trading on the New York Stock Exchange under the ticker SECZ. The registration allows Securitize Capital to offer a broader range of advisory services while becoming subject to Investment Advisers Act requirements. It can now work with asset managers and institutional investors exploring tokenized funds and on-chain investment strategies.
Securitize Capital Gains SEC Adviser Registration
Securitize Capital previously operated as an exempt reporting adviser. That status generally allowed it to advise venture capital funds. It could also advise private funds with less than $150 million in U.S. assets under management.
Full registration allows Securitize to offer a wider range of regulated advisory services. The company can now work more closely with institutions developing tokenized investment products while following the Investment Advisers Act of 1940. Securitize co-founder and CEO Carlos Domingo said:
“Becoming an SEC-registered investment adviser is an important step in the continued expansion of Securitize’s platform.”
He added that institutions want partners that understand both tokenization and the rules that apply to regulated markets.
Registration Adds to Securitize’s Regulated Services
Securitize’s U.S. affiliates now include an SEC-registered investment adviser, broker-dealer, alternative trading system and transfer agent. The company also provides fund administration services through Securitize Fund Services.
Together, these businesses allow Securitize to support several stages of a tokenized asset’s life. Its services cover product development, issuance, investor records, trading, administration and now investment advice.
The registration also places Securitize Capital under Investment Advisers Act requirements as more firms explore tokenized funds and on-chain portfolio tools. The rules may differ depending on how each product works and who manages it.
Expansion Follows Securitize’s Public Listing
Securitize completed its merger with Cantor Equity Partners II, a special purpose acquisition company, on July 1. It began trading on the NYSE the following day.
The deal raised about $400 million in gross proceeds. The transaction valued Securitize at approximately $1.25 billion before closing. The company said it had brought more than $4 billion in assets on-chain by the time of the listing. Its partners include major asset managers such as BlackRock, Apollo, Hamilton Lane, KKR and VanEck.
Securitize has also agreed to work with Cantor Fitzgerald on infrastructure for tokenized public offerings. The project is intended to allow companies to issue shares and raise money on-chain while following existing securities rules.
