Securitize Shares Slide 20% After Tokenization Revenue Miss

Tokenized assets and trading volumes reached new highs, but Securitize’s revenue declined in its first earnings report since becoming a public company.

Securitize (SECZ) shares fell 20% in after-hours trading Wednesday after the tokenization company reported second-quarter results below Wall Street expectations. The report marked its first earnings release since the company went public last month.

The firm, best known for issuing and managing BlackRock’s BUIDL tokenized money-market fund, generated $14.4 million in revenue during the quarter. That was 5% lower than the same period a year earlier and well below analysts’ $20.6 million estimate.

Securitize recorded a loss of $2.37 per share, significantly wider than the expected $0.15 loss. Net losses reached $21.7 million, while adjusted EBITDA shifted to a $5.5 million loss from a $1.8 million profit a year earlier.

Investor enthusiasm around tokenization has continued to build as financial institutions move funds, equities and other traditional assets onto blockchain networks. Securitize is a major player in that transition, although the rising adoption of tokenized assets has yet to translate into consistent revenue growth.

CEO Carlos Domingo described the quarter as “softer” during Wednesday’s earnings call while highlighting the company’s stronger performance earlier in the year. Revenue for the first six months remained 16% above the prior-year period, helped by record first-quarter revenue of $19.5 million.

Tokenized Asset Activity Reaches Records

Despite the weaker financial performance, activity across Securitize’s platform continued to expand.

Average tokenized assets under management climbed 16% year over year to a record $4.3 billion. Transaction volume jumped 147% to $5.3 billion.

Securitize’s fund-services division was responsible for 663 active funds representing $24.3 billion in assets under administration.

The company provides the infrastructure that allows asset managers to issue and administer traditional financial products, including investment funds, as blockchain-based tokens. Its customer base includes major institutions such as BlackRock and KKR, placing Securitize at the forefront of Wall Street’s tokenization efforts.

BUIDL, launched in partnership with BlackRock in 2024, has become one of the largest tokenized Treasury and money-market products.

Securitize is also collaborating with the New York Stock Exchange on infrastructure designed to support tokenized securities trading. In addition, it has partnered with transfer-agent giant Computershare to facilitate tokenized shares for U.S. companies.

Wednesday’s results represented Securitize’s first quarterly report as a publicly listed company following its July merger with a Cantor-backed special purpose acquisition company.

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