Securitize Revenue Falls 5% as Tokenized Assets Hit $4.3 Billion

Securitize, a leading Tokenization Platform, has reported a record $4.3 billion in average tokenized assets in Q2, while revenue fell 5% to $14.4 million and its net loss widened to $21.7 million.

This has raised a bigger question for the tokenization market, that why is revenue falling while assets and trading activity are surging?

Securitize Tokenized Assets Reach $4.3B

Securitize reported record average tokenized assets under management of $4.3 billion during the second quarter, up 16% from a year earlier. Total tokenized AUM also stood at $4.3 billion at the end of June, marking a 9% yearly increase.

The bigger jump came from activity on the platform, as the aggregate transaction volume reached $5.3 billion, up 147% year over year.

Securitize CEO Carlos Domingo said, 

“With approximately $5.0 billion in assets now managed onchain and more than seven assets each with $100 million or more in AUM, Securitize believes it is positioned for the next stage of institutional tokenization growth.”

Meanwhile, the numbers show that more assets are moving through Securitize, but that growth has not yet translated into higher revenue.

Revenue Falls Despite Stronger Tokenization Activity

Securitize generated $14.4 million in total revenue during Q2, down 5% from the prior year period. At the same time, the company reported a $21.7 million net loss, compared with a $6.1 million loss a year earlier. 

Its adjusted EBITDA also turned negative, with a $5.5 million loss, compared with a $1.8 million profit in the same period last year.

Securitize CFO Francisco Flores said quarterly revenue can remain volatile at this stage of the company’s growth.

“We continued to make solid progress on our financial goals in the second quarter, reporting total revenue of $14.4 million.”

Securitize Expands Into Tokenized Stocks

The company is also building new ways to bring traditional markets onchain. During Q2, Computershare and Continental Stock Transfer & Trust selected Securitize to support tokenized shares for U.S. public companies. The company also expanded its relationship with the NYSE around tokenized equities.

Securitize Markets received FINRA approval to custody tokenized securities, allowing atomic settlement between tokenized securities and stablecoins.

Shortly after the quarter ended, Securitize began trading on the New York Stock Exchange on July 2, becoming the first tokenization company to go public.

$350M Cash Gives Securitize More Room for Business

Despite the wider loss, Securitize entered Q3 with a stronger balance sheet. The company had approximately $350 million in cash and no debt after completing its business combination.

The next test will be whether Securitize can turn its growing $4.3 billion tokenized asset base and $5.3 billion quarterly transaction volume into steady revenue.