CoinClear

Securitize

7.8/10

SEC-registered tokenized securities platform behind BlackRock's BUIDL fund — the institutional standard for on-chain securities.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

Securitize is an SEC-registered digital securities platform that provides the full technology and compliance infrastructure for issuing, managing, and trading tokenized securities. Founded in 2017 by Carlos Domingo (former CEO of Telefónica R&D), Securitize has become the institutional standard for RWA tokenization — the platform behind some of the most significant tokenized fund launches in crypto history.

The landmark achievement is BlackRock's BUIDL (BlackRock USD Institutional Digital Liquidity Fund), tokenized on Ethereum through Securitize. BUIDL has attracted over $500M in assets, making it the largest tokenized money market fund. Beyond BlackRock, Securitize has tokenized funds for KKR (a $4B+ PE giant), Hamilton Lane (private credit and equity), and other institutional asset managers.

Securitize operates as a registered transfer agent with the SEC and a broker-dealer (through its subsidiary Securitize Markets), giving it the regulatory standing to handle securities issuance, transfer, and trading in the US — a critical advantage that most crypto-native platforms lack. The DS Protocol (Digital Securities Protocol) provides the smart contract layer for compliant on-chain securities.

Technology

DS Protocol

Securitize's DS Protocol is a smart contract framework for compliant security tokens. The protocol enforces transfer restrictions at the contract level — tokens can only be transferred between verified, compliant wallets. This ensures that securities regulations (accredited investor requirements, holding periods, transfer restrictions) are enforced on-chain, not just off-chain.

The protocol supports ERC-20 (fungible security tokens) and ERC-721/1155 (non-fungible securities) standards with built-in compliance modules. These modules handle KYC/AML verification, accredited investor checks, jurisdictional restrictions, and lock-up period enforcement.

Investor Platform

The Securitize platform provides a full investor lifecycle: onboarding (KYC/AML), investment, portfolio management, dividend distribution, corporate actions, tax reporting, and secondary market trading. The platform handles the operational complexity that makes tokenized securities viable for institutional use — not just the token creation but the ongoing compliance and management.

Multi-Chain Support

Securitize deploys security tokens on Ethereum, Polygon, Avalanche, and other chains. The multi-chain approach allows issuers to choose the optimal chain for their use case (Ethereum for institutional credibility, Avalanche for subnet customization, etc.).

Asset Quality

Institutional Asset Managers

The asset managers using Securitize are among the most prestigious in global finance:

  • BlackRock: The world's largest asset manager ($10T+ AUM). BUIDL is tokenized through Securitize.
  • KKR: One of the world's largest PE firms. Tokenized private equity fund access through Securitize.
  • Hamilton Lane: $800B+ in assets under management and supervision. Tokenized private equity and credit.

The quality of issuers using Securitize is unmatched in the tokenization space. These are not crypto-native experiments — they are established financial institutions choosing Securitize as their tokenization partner.

Fund Structure

Tokenized funds maintain the same legal structure, custodial arrangements, and investor protections as their traditional counterparts. The tokenization adds on-chain transferability and transparency without changing the underlying fund mechanics or investor rights.

Compliance

Regulatory Standing

Securitize holds critical US regulatory registrations:

  • SEC-registered Transfer Agent: Authorized to record and maintain securities ownership records.
  • Broker-Dealer (Securitize Markets): Licensed to facilitate securities trading.
  • FINRA membership: Subject to FINRA oversight and compliance requirements.

This regulatory standing is Securitize's most significant competitive advantage. Operating as a registered transfer agent and broker-dealer requires extensive compliance infrastructure, regulatory relationships, and ongoing oversight that create a deep moat against competitors.

Compliance-by-Default

Security tokens issued through the DS Protocol enforce compliance at the smart contract level. Transfers are automatically blocked if they would violate securities regulations (e.g., transferring to a non-accredited investor, violating lock-up periods). This "compliance-by-default" approach is essential for institutional adoption.

Global Reach

Beyond the US, Securitize operates in Europe (through European regulatory frameworks) and is expanding globally. The ability to navigate securities regulation in multiple jurisdictions is a significant operational capability.

Adoption

TVL and Issuance

Securitize has facilitated the tokenization of billions of dollars in assets across multiple fund structures. BlackRock's BUIDL alone represents $500M+, and the cumulative issuance across all clients is several billion. This makes Securitize the largest platform for institutional tokenized securities by a significant margin.

Institutional Partnerships

The partnership roster — BlackRock, KKR, Hamilton Lane — represents a level of institutional validation unmatched in crypto. These firms chose Securitize after extensive due diligence, and their continued use validates the platform's technology, compliance, and operational capabilities.

Secondary Trading

Securitize Markets provides a regulated secondary market for trading tokenized securities. While secondary market liquidity is still limited compared to traditional markets, the infrastructure for compliant secondary trading exists and is growing.

DeFi Integration

Securitize has enabled limited DeFi composability for tokenized securities — BUIDL tokens have been used as collateral in DeFi protocols. This bridges institutional securities with DeFi, though compliance constraints limit the depth of integration.

Tokenomics

No Public Token

Securitize does not have a public utility or governance token. The company generates revenue through issuance fees, platform subscription fees, and transaction fees on secondary trading. This is a traditional SaaS/fintech revenue model rather than a crypto-native token model.

Venture Capital Backed

Securitize has raised $100M+ in venture capital from investors including BlackRock (who is also a client), Morgan Stanley, and others. The VC backing provides capital for growth but also means the company's value accrues to equity holders, not token holders.

Investment Access

The only way to gain exposure to Securitize's success is through the tokenized funds it hosts (e.g., buying BUIDL for Treasury exposure) or through private equity investment in the company itself. This limits the crypto-native investment thesis.

Risk Factors

  • No public token: No mechanism for crypto-native community to capture value from Securitize's growth.
  • Regulatory dependency: Securitize's business depends on maintaining its regulatory standing; any compliance failure could be catastrophic.
  • Centralized platform: A single company operating critical infrastructure for institutional securities creates concentration risk.
  • Liquidity constraints: Secondary market liquidity for tokenized securities is limited compared to traditional markets.
  • Competition: Traditional financial infrastructure (DTCC, Euroclear) may tokenize directly, bypassing Securitize.
  • Market cycle dependency: Institutional tokenization interest correlates with crypto market sentiment.

Conclusion

Securitize is the most important company in the tokenized securities space. The combination of SEC registration, BlackRock partnership, and institutional-grade platform creates a competitive position that will be extremely difficult for competitors to replicate. When BlackRock — the world's largest asset manager — chooses your platform for its first tokenized fund, that's the strongest possible market validation.

The 7.8 score reflects the extraordinary institutional positioning, compliance infrastructure, and asset quality. The primary limitation from a crypto-native perspective is the absence of a public token — Securitize's success accrues to equity investors, not the crypto community. For the RWA sector overall, Securitize is setting the standard for what institutional tokenization looks like.

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