Key facts
- Benchmark Equity Research maintained its Buy rating on Securitize.
- Benchmark set a $16 price target for Securitize, projecting $178 million in revenue by 2027.
- Securitize's merger with Cantor Equity Partners II cleared a regulatory hurdle with the SEC.
- A shareholder vote on the merger is scheduled for June 29.
- Securitize's platform includes SEC-registered broker-dealer, ATS, and transfer agent capabilities.
- Securitize partners with BlackRock on its BUIDL fund and a stablecoin reserve vehicle.
- Securitize also partnered with Computershare to support tokenized equity securities.
- As of March 31, Securitize managed $3.4 billion in tokenized assets.
Benchmark Equity Research has reiterated its Buy rating on Securitize, a firm specializing in tokenization infrastructure, as the company approaches its planned listing on the New York Stock Exchange (NYSE). The research firm set a price target of $16 per share, based on revenue projections of $178 million for 2027.
This rating comes as the U.S. Securities and Exchange Commission (SEC) has declared Securitize's registration statement for its merger with Cantor Equity Partners II effective, a crucial step before a shareholder vote scheduled for June 29. Upon approval and fulfillment of closing conditions, the combined entity is expected to be listed on the NYSE under the ticker symbol SECZ.
Benchmark analyst Mark Palmer highlighted in a note that Securitize could begin trading publicly shortly after the shareholder vote, coinciding with a period of increasing adoption for tokenization infrastructure. Palmer emphasized that the critical factor for investors is not the advent of real-world asset tokenization, but rather which companies will control the underlying infrastructure.
Palmer believes Securitize has established a significant competitive advantage due to its comprehensive, cross-jurisdictional regulatory compliance. The company operates as an SEC-registered broker-dealer, an SEC-regulated alternative trading system, an SEC-registered transfer agent, an exempt reporting adviser, and holds a regulated trading and settlement license under the EU's DLT Pilot Regime.
Benchmark pointed to the strengthening relationship between Securitize and BlackRock as validation of its platform. Securitize serves as the tokenization platform, transfer agent, and placement agent for BlackRock's BUIDL fund, which has grown to approximately $2.46 billion in assets since its March 2024 launch. Additionally, BlackRock selected Securitize to support its proposed Daily Reinvestment Stablecoin Reserve Vehicle.
Further bolstering Securitize's market position, the company has partnered with Computershare. This collaboration, announced in late April, aims to facilitate the issuance of tokenized equity securities for U.S.-listed clients through Securitize's technology, marking an expansion into public equities.
On the demand side, Benchmark noted a shift in tokenized assets from static instruments to programmable collateral. This trend is exemplified by VanEck's Treasury fund, issued by Securitize, which became operational on the DeFi lending platform Euler in late May.
As of March 31, Securitize reported $3.4 billion in tokenized assets under management. The broader tokenized asset market has nearly tripled in the past year, surpassing $30 billion. However, Benchmark acknowledged potential risks to its optimistic outlook, including regulatory uncertainties, the pace of adoption, and reliance on partners.