Jump Crypto Takes a Bold Step in Tokenization by Acquiring Stake in Securitize
Jump Crypto has obtained a significant equity stake in Securitize, although the financial specifics remain confidential.
Jump Crypto, the digital asset branch of Chicago-based quantitative trading firm Jump Trading, has acquired a noteworthy equity position in Securitize, a frontrunner in the tokenization of real-world assets.
Details regarding the financial arrangement have not been disclosed.
This partnership seeks to enhance institutional access to tokenized assets such as Treasuries, private credit, and private equity, while improving collateral management solutions amidst the growing demand for real-world asset tokenization.
“We see this investment as a clear indication that firms like Jump are confident in the potential of tokenization and its transformative effects on capital markets, capital formation, and investment accessibility on-chain,” remarked Securitize’s COO, Michael Sonneshein.
According to rwz.xyz, more than $22 billion worth of real-world assets are currently represented on blockchain technologies.
Jump’s investment marks Securitize’s first external funding round since BlackRock’s $47 million investment last year.
BlackRock’s BUIDL fund is the firm’s first investment vehicle focused on blockchain technology, overseeing $2.86 billion in assets and operating similarly to a money market fund.
Why this deal matters
Since its launch a little over a year ago, investment in tokenized Treasury products has skyrocketed by 800%, nearing $7 billion. This impressive growth signifies a rising interest among investors in these innovative blockchain-based investment options in pursuit of better returns.
Looking ahead, Securitize is gearing up to unveil Converge, a new blockchain initiative created in collaboration with Ethena Labs.
Converge, designed to support DeFi and tokenized assets, aims to provide a compliant entry point for institutional capital entering the DeFi space. The launch is anticipated to occur this quarter.