Blockchain Finance's Breakthrough: Securitize's $1B SPAC Merger

Securitize, a leading blockchain tokenization platform, is in advanced talks to go public via a merger with Cantor Equity Partners II Inc., a SPAC backed by Cantor Fitzgerald, according to multiple reports. The potential deal could value the firm at over $1 billion, positioning it as one of the first tokenization companies to secure a public listing through a Special Purpose Acquisition Company (SPAC) structure. This move underscores growing institutional confidence in the tokenization of real-world assets (RWAs), a market now exceeding $33 billion in tokenized value.

A SPAC is a publicly traded shell company designed to acquire a private firm and take it public without a traditional IPO. This route has gained traction among crypto and fintech firms seeking faster access to capital markets. Securitize's potential merger would follow in the footsteps of companies like Bakkt and Core Scientific, which previously used SPACs to list. The transaction could also signal a broader revival of SPAC activity in the digital-asset sector, as seen with recent listings by Circle and Figure Technologies.

Securitize's role in tokenization is pivotal. The firm's platform underpins BlackRock's BUIDL fund, the largest tokenized U.S. Treasury fund with over $2.8 billion in assets. It also facilitates tokenized private credit and equity offerings, supported by major institutional investors such as BlackRock, Morgan Stanley, and BNY Mellon. In May 2024, Securitize raised $47 million in a funding round led by BlackRock, further cementing its position as a key player in the sector.

The SPAC merger, if finalized, would bring Securitize under the Nasdaq-listed CEPT, a blank-check company sponsored by Cantor Fitzgerald. CEPT, led by Brandon Lutnick (son of U.S. Secretary of Commerce Howard Lutnick), raised $240 million in its IPO and holds $5.8 million in sponsor private placements. Shares in CEPT surged over 12.5% following Bloomberg's report on the potential deal.

Institutional adoption of tokenized RWAs is accelerating. BNY Mellon recently announced plans to explore tokenized deposits for real-time settlements, while S&P Global launched the Digital Markets 50 Index to track cryptocurrencies and blockchain-linked equities. Meanwhile, BlackRock's BUIDL fund has demonstrated the viability of tokenized money market funds, distributing daily interest to investors via smart contracts.

The broader market for tokenized assets is expanding rapidly. RWA.xyz data shows that U.S. Treasurys and private credit dominate early adoption, with tokenization enabling fractional ownership and 24/7 trading. Cantor Fitzgerald's involvement in the deal highlights the financial industry's deepening commitment to blockchain infrastructure, as institutions seek to modernize capital markets.

While Securitize has not commented publicly on the discussions, the potential listing reflects a strategic shift toward regulated, onchain finance. If completed, the merger would provide Securitize with public-market visibility and capital to scale its tokenization platform. However, SPACs carry inherent risks, including regulatory scrutiny and post-merger volatility, which could impact the firm's long-term performance.

The deal also aligns with a broader trend of Wall Street's integration into blockchain. BlackRock's $47 million investment in Securitize, alongside its role as the BUIDL fund's issuer, underscores the asset manager's bet on tokenization as a cornerstone of future finance. As traditional institutions increasingly tokenize assets, the sector's growth could reshape capital markets, blending blockchain's efficiency with institutional credibility.

Source: [1] Securitize Eyes $1B SPAC Deal With Cantor Fitzgerald: ... (https://cointelegraph.com/news/securitize-cantor-fitzgerald-spac-tokenization-ipo)

[2] RWA giant Securitize eyeing public listing via Cantor Fitzgerald ... (https://www.theblock.co/post/374286/rwa-giant-securitize-eyeing-public-listing-via-cantor-fitzgerald-spac-at-unicorn-valuation-bloomberg)

[3] Securitize in Talks With Cantor Fitzgerald SPAC for $1B+ Public ... (https://financefeeds.com/securitize-in-talks-with-cantor-fitzgerald-spac-for-1b-public-listing/)

[4] Securitize Eyes $1 Billion Valuation in Landmark SPAC Merger ... (https://tecronet.com/securitize-eyes-1-billion-valuation-in-landmark-spac-merger-with-cantor-fitzgerald/)

[8] $47 million (https://beincrypto.com/blackrock-invest-47-million-tokenization-firm/:~:text=BlackRock%20has%20spearheaded%20a%20%2447%20million%20investment%20round,step%20in%20the%20evolution%20of%20digital%20asset%20securities)

[9] What Is BlackRock's BUIDL? Inside the $2B Tokenized ... (https://www.ccn.com/education/crypto/blackrock-buidl-fund-tokenized-money-markets-explained/)