By
Bhushan Akolkar
May 2nd, 2024
Securitize intends to improve liquidity and transparency by transferring private investments onto public blockchains like Ethereum, Avalanche, Polygon, and Algorand.
Securitize, a New York-based company focused on expanding investor and business access to tokenized alternative assets, announced Friday the acquisition of Onramp Invest, an asset management firm backed by Coinbase. According to an official press release, the move is set to reshape the landscape for Registered Investment Advisors (RIAs) and their clients by providing unprecedented access to a diverse range of alternative asset classes, all through the familiar Onramp Invest platform.
Today we've taken a big step forward in expanding access to private markets with our acquisition of @Onrampinvest. RIAs can now offer clients access to top-tier alternative asset classes, lower entry points, and potential for exit liquidity. Learn more: https://t.co/IfJKSQqgyc pic.twitter.com/kd8T8J5vhy
— Securitize (@Securitize) August 17, 2023
For the first time, RIAs will be able to offer their customers an opportunity to invest in top-performing assets, including private equity, a historically exclusive asset class offering investors exposure to non-publicly traded companies, private credit, a highly sought-after class that recorded a staggering $71.2 billion in capital influx during the last quarter, as well as secondaries and real estate. Securitize CEO Carlos Domingo said:
“Our acquisition of Onramp is another big step forward in expanding investor access to top-performing alternative assets and in democratizing private capital markets. Onramp already offers RIAs easy access to digital assets, so it is a natural extension to offer them tokenized alternative assets to complement their portfolios.”
Onramp to Continue Its Services as a Unit of Securitize
Securitize said in its release that Onramp will continue its operations in the US as a subsidiary of the company. The asset management firm with over $40 billion in assets under management already has a business relationship with notable asset managers and digital asset space leaders like WisdomTree, CoinDesk, Global X, and Valkyrie Invest. The firm already partnered with these companies to create crypto investment indexes.
The collective power of Securitize and Onramp will transform how RIAs approach investments. The combined capabilities offer an unmatched fusion of technology and financial expertise, expanding the horizons for advisors and their clients.
Securitize intends to improve liquidity and transparency by transferring private investments onto public blockchains like Ethereum, Avalanche, Polygon, and Algorand.
Eric Ervin, founder and CEO of Onramp, said that Securitize offers lower minimums and cheaper fees than other companies focused on tokenized assets.
“More advisors would choose alternatives for their clients because the benefits are clear, but challenges like illiquidity and restricted access were previously significant problems to overcome. Securitize solves this through offering lower minimums, lower fees, and the potential for exit liquidity through secondary markets,” he said.
Tokenization Paves the Way for Finance’s Blockchain Transition
According to a Decrypt report, Securitize’s acquisition of Onramp indicates the rising wave of merging traditional financial structures with cutting-edge digital asset solutions. The move highlights the potential for tokenization, a game-changer that could shift financial operations onto blockchain networks.
BlackRock CEO, Larry Fink, has called this domain the “next generation for markets”. During a New York Times DealBook event last December, Fink expressed his views on tokenization, emphasizing its ability to offer “instantaneous settlement” and reduced fees.
Despite these advantages, he reassured the audience that the evolution of this technology would not affect BlackRock’s current business model.