Benchmark Initiates Coverage on Securitize, Calls It a 'Picks and Shovels' Play for Tokenization

Benchmark analyst Mark Palmer has initiated coverage on Securitize with a Buy rating and a $16 price target. The firm is seen as a 'picks and shovels' provider in the tokenization space, capturing fees across the entire lifecycle of tokenized assets. This model positions it to benefit from growing institutional adoption of on-chain real-world asset tokenization.

Securitize's platform currently supports BlackRock's BUIDL, the largest tokenized money-market fund. BUIDL holds approximately $2.2 billion in assets and is issued across multiple blockchain networks, including Ethereum and Solana. This partnership underscores Securitize's role in enabling major financial institutions to enter the tokenization market.

The firm has captured 70% of the U.S. tokenization market and is working with asset managers like BlackRock and the NYSE. The NYSE has enlisted Securitize to build a platform for tokenized stocks and ETFs, reinforcing its role in the broader capital markets infrastructure.

How Does Securitize's Business Model Differ From Traditional Financial Infrastructure?

Securitize operates as a platform that supports the issuance, management, and trading of tokenized securities. Unlike traditional exchanges or clearinghouses, which focus on a single point in the asset lifecycle, Securitize captures fees across all stages. This includes token creation, compliance, transfer, and trading, giving it a broader revenue stream.

The firm's business model is comparable to the infrastructure companies that profited during the shift to electronic trading in the 1990s. As more real-world assets move on-chain, Securitize is positioned to capture a similar role in the tokenization ecosystem.

What Are the Implications for Investors and Regulators?

Securitize's platform has a total addressable market of $300 trillion in real-world assets, including real estate, commodities, and debt instruments. This scale could make it a critical player in the future capital markets landscape. Analysts note that the company is preparing for a public listing via a merger with Cantor Equity Partners II, which could provide greater visibility for investors.

Regulators, including the SEC and Congress, are closely watching the tokenization space. Securitize's role in managing compliance and AML procedures for tokenized assets may give it an advantage in a heavily regulated environment. The firm's strategic position between institutional clients and regulatory frameworks is a key factor for long-term success.

Forum Markets (FRMM) is another firm that has transitioned to RWA tokenization. The company reported $6.5 million in 2025 revenue and projects $18 million to $26 million in 2026. This trend suggests that tokenization is gaining traction across multiple segments of the financial industry.

What Are the Risks and Challenges in the Tokenization Ecosystem?

While the tokenization market is growing, challenges remain. TD Securities has warned that Nasdaq's efforts to integrate tokenization could lead to a dual-market structure. Traditional exchanges and blockchain-based platforms may trade the same assets at different prices, fragmenting trading activity and complicating investor strategies.

The risk of regulatory divergence is another concern. Offshore blockchain platforms may operate under different rules than U.S. exchanges, creating potential arbitrage opportunities. This fragmentation could shift trading activity away from traditional exchanges.

Securitize's focus on the process of tokenization rather than a specific industry or product reduces exposure to these risks. However, as the market evolves, the firm will need to adapt to regulatory changes and technological innovations to maintain its competitive edge.