Cathie Wood's ARK Investment: Tokenization with Securitize

Cathie Wood's ARK Invest Invests in Securitize

ARK Invest has acquired a stake in the tokenization firm Securitize, becoming part of the growth in this sector. The fund named ARK Venture Fund invested approximately 10 million dollars in Securitize, securing the eighth largest position in the fund. This information is based on the fund's latest status report.

The tokenization of real-world assets is a rapidly growing trend in the financial world. The market for this is expected to double in 2023 and is projected to reach one trillion dollars within the next decade. Under the leadership of Cathie Wood, ARK Invest is turning towards tokenization as Wall Street races to move assets to blockchain platforms. The ARK Venture Fund (ARKVX) holds 3.25% of its assets in Securitize. According to recent announcements, this percentage follows investments in AI companies such as X.AI and Anthropic.

As of September 30, the ARK Venture Fund reported a net asset value of 325.3 million dollars. Based on these calculations, ARK's investment in Securitize is valued at approximately 10 million dollars. Tokenization has become quite popular in the crypto world as it moves traditional financial instruments, such as bonds, funds, and stocks, onto blockchain platforms.

Global banks and asset managers are exploring tokenization to shorten transaction times, expand investor access, and provide the ability for markets to remain open 24 hours. Data indicates that the market for tokenized assets has reached 33 billion dollars and could rise to 18.9 trillion dollars by 2033. Securitize was founded in 2017 and is led by CEO Carlos Domingo. The company has partnered with traditional financial giants like BlackRock, Hamilton Lane, and Apollo, issuing 4.6 billion dollars worth of tokenized assets.

Additionally, Securitize manages 2.8 billion dollars in assets through BlackRock's tokenized money market fund, the BlackRock USD Institutional Digital Liquidity Fund. The company created on-chain stocks for the wallet provider Exodus, which was listed in 2022, and partnered with FG Nexus to introduce common and preferred stocks on the Ethereum blockchain. ARK's investment follows Securitize's completion of a 47 million dollar funding round led by BlackRock and Hamilton Lane.