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Tokenized securities platform Securitize sees $5.3B in tokenized volume
Securitize’s revenue fell 5% to $14.4 million and it posted a $21.7 million net loss despite transaction volume jumping 147% to $5.3 billion.
Securitize, a platform that issues and services tokenized securities, reported a sharp rise in activity in the second quarter, but financial results did not keep pace. The company said average tokenized assets under management reached $4.3 billion, up 16% from a year earlier, while aggregate transaction volume surged 147% to $5.3 billion, according to its quarterly results.
The firm defines transaction volume broadly to include investments, redemptions, dividends, and cross-chain asset movements. Securitize said the increase was driven mainly by subscription and redemption activity in BlackRock’s BUIDL and BUIDL-I funds, plus a $250 million subscription to the Securitize Tokenized AAA CLO Fund.
Despite the higher platform activity, Securitize’s revenue declined 5% to $14.4 million. Tokenization revenue fell 12% to $7.8 million, which management attributed primarily to fewer completed on-chain integrations, while asset-servicing revenue rose 3% to $6.6 million.
Securitize reported operating costs and expenses rose 56% year over year to $24.1 million, including higher selling, general and administrative expenses and compensation and benefits as it added staff. The cost increases pushed the operating loss to $9.7 million, and adjusted EBITDA swung to a $5.5 million loss, as the company posted a $21.7 million GAAP net loss, CryptoSlate reported.