Why Securitize Stock Surged Today
More real-world assets are moving onchain.
Securitize's stock price surged by 22% on Tuesday following the tokenization platform's announcement of an intriguing acquisition. The financial technology company reported a 13% year-over-year increase in revenue, reaching $18.6 million in the third quarter. Securitize enables the conversion of ownership of real-world assets into digital tokens on a blockchain, enhancing access and transparency in previously illiquid markets.
The platform's average tokenized assets surged 39% to $5 billion. This growth is attributed to tier-one asset managers bringing new real products on-chain, including offerings from prominent firms like Ark Invest, BlackRock, and Neuberger. CEO Carlos Domingo stated that this is a clear indication that institutions have moved beyond the experimental stage.
However, investors should note that Securitize has not yet achieved sustained profitability, with an adjusted EBITDA loss of $2 million. The company also announced a deal to acquire River One, a firm specializing in connecting the $321 billion global stablecoin market with traditional lending. This acquisition, expected to close in the fourth quarter, marks an important step in expanding Securitize's presence in the $6 trillion asset-backed finance market.
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