Securitize will drive the adoption of tokenized real-world assets (RWAs), introducing institutional-grade financial products to the blockchain.
RWAs, or real-world assets, are physical assets like real estate and commodities that hold value in the traditional economy. Securitize’s integration with Solana aims to expand this innovation, facilitating the evolution of institutional finance on-chain.
Tokenizing Real-World Assets (RWAs) involves converting them into digital tokens on a blockchain, making online trading or investing more manageable.
This approach could bolster the digital investment market, offering institutions and individual investors a more convenient and secure way to access financial products on the blockchain.
Solana’s technology is designed to handle large volumes of transactions quickly and affordably. According to Securitize, Solana’s technology makes it an ideal platform for tokenized assets like the Apollo Diversified Credit Securitize Fund ($ACRED).
The Apollo Diversified Credit Securitize Fund is an investment fund focused on private credit, which involves lending money to businesses or projects that may not qualify for traditional bank loans. The fund pools investors’ money to invest in these credit opportunities, with ownership represented by digital tokens on the blockchain.
With this integration, Securitize wants to make digital securities faster and easier to access while ensuring they stay secure and follow financial rules. Many institutional investors have hesitated to enter the digital asset space due to regulatory challenges.
Securitize helps businesses turn real-world investments, like credit funds, into digital assets on the blockchain. This makes it quicker for people to buy, sell, and trade these assets online while following financial rules.
Nick Ducoff, Head of Institutional Growth at the Solana Foundation, highlighting the importance of this expansion, stated that “Securitize’s expansion onto Solana represents another milestone in bringing institutional-grade financial products on-chain, unlocking new opportunities for investors worldwide,” he said.
Read also: Sei Foundation launches $65M Fund to spur decentralized science (DeSci) growth
The partnership aligns with the broader trend of traditional finance moving onto blockchain networks. Institutional investors have increasingly embraced digital assets as part of their investment strategies, recognizing the potential for higher returns, greater liquidity, and innovation in financial markets. This shift is seen across various sectors, including hedge funds, pension funds, and family offices.
One example is the Grayscale Bitcoin Trust (GBTC), which allows institutional investors to gain exposure to Bitcoin without directly buying the cryptocurrency. The trust has attracted billions of dollars from institutional investors.
Another example is Fidelity Investments, which launched Fidelity Digital Assets to provide custody and trade execution services for cryptocurrencies. This move enables large institutions to manage their digital asset portfolios with the same security and regulatory standards as traditional investments.
In addition, BlackRock, the world’s largest asset manager, has started offering Bitcoin futures as part of its investment products. This has further legitimized cryptocurrency as an asset class for institutional investors.
The partnership of companies like Securitize with blockchain networks like Solana shows how high-quality financial products are moving onto the blockchain, creating a link between traditional finance and the growing digital asset market.
