Securitize Reports Record $4.3 Billion in Tokenized Assets as Revenue Declines 5%

Securitize posted record average tokenized assets under management of $4.3 billion for the second quarter, a 16% increase from the same period last year, according to its first earnings report since becoming a publicly traded company. However, total revenue fell 5% to $14.4 million, and the company's net loss widened to $21.7 million.

The decline in tokenization revenue came despite growth in both assets and transaction activity, providing investors with an early signal of whether expanding tokenized fund offerings can translate into sustainable revenue for the firm. Securitize serves as the transfer agent and tokenization platform for several major tokenized products, including BlackRock's BUIDL tokenized treasury fund, which launched in March 2024 and has grown into one of the largest tokenized funds on a public blockchain.

Shares fell approximately 16% in after-hours trading to $6.61 at 8 p.m. ET, following a Wednesday close at $7.86, according to Yahoo Finance market data.

Tokenization Revenue Trails Asset Growth

The revenue decrease was concentrated in Securitize's tokenization business, where quarterly revenue dropped 12% to $7.8 million. Asset-servicing revenue, by contrast, rose 3% to $6.6 million. Together, these segments left total revenue below the prior-year quarter.

Securitize reported adding approximately $1 billion in tokenized assets during the quarter, reversing declines recorded in the previous two quarters. Aggregate transaction volume climbed to $5.3 billion, representing a 147% year-over-year increase. The gap between surging transaction volume and declining tokenization revenue highlights a question facing the broader real-world asset tokenization sector: whether early growth in on-chain assets can scale into durable fee-based income for infrastructure providers.

The company's fund-services segment moved in the opposite direction. Assets under administration declined roughly 20% to $24.3 billion as of June 30, with Securitize servicing 663 active funds.

On the cost side, total operating expenses increased 56% to $24.1 million. This included a 133% surge in selling, general, and administrative expenses to $8.2 million and a 31% rise in compensation and benefits to $10.5 million. The operating loss widened substantially to $9.7 million, compared with approximately $198,000 in the year-earlier period.

Adjusted EBITDA, which excludes several non-cash and other items, swung to a $5.5 million loss from a $1.8 million profit. The GAAP net loss also reflected changes in the fair value of option, derivative, and future-equity liabilities.

Results Pre-Date the Cantor Combination

The quarter closed before Securitize completed its business combination with Cantor Equity Partners II on July 1. According to the company's Form 8-K, the reported results pertain to Securitize I, the operating entity prior to the transaction, rather than the post-combination public company.

Securitize began trading on the New York Stock Exchange under the ticker SECZ on July 2. Chief Financial Officer Francisco Flores stated that the combination left the company entering the third quarter with approximately $350 million in cash and no debt.

The company is scheduled to discuss the results on an earnings call at 8:30 a.m. ET on Aug. 13.

Source: The Defiant