Jump Crypto Takes Strategic Stake in Securitize to Advance Asset Tokenization

Jump Crypto’s Investment Demonstrates Belief in Tokenization

Jump Crypto, the cryptocurrency division of Chicago-based trading firm Jump Trading, has acquired a significant equity position in Securitize, a tokenization platform for real-world assets (RWAs). While terms of the deal were not disclosed, the transaction is a strong signal that institutional investors are increasingly confident in blockchain infrastructure.

Securitize COO Michael Sonneshein emphasized that the investment signifies growing confidence in the power of tokenization to shake up capital markets, capital formation, and access to investment.

Scaling Blockchain Access to Real-World Assets

Securitize has come into prominence as one of the top players in the growing RWA tokenization space, now far in excess of $22 billion in on-chain assets, according to rwz.xyz. Securitize offers tokenized exposure to traditionally illiquid assets such as U.S. Treasurys, private credit, and private equity.

The investment by Jump will be used to further enhance the platform’s collateral management features and broaden access for institutional investors as blockchain adoption accelerates further.

From BlackRock to Blockchain Infrastructure

This deal is the largest outside investment in Securitize to date following the investment of $47 million in the firm by BlackRock in 2023. BlackRock’s BUIDL fund, its first on-chain fund, has around $2.9 billion of assets under management and functions similarly to a money market fund, illustrating how tokenization is being integrated into traditional investment approaches.

In the pipeline: Converge Blockchain launch

Securitize is also poised to roll out Converge, a new blockchain developed in collaboration with Ethena Labs. Converge will be an on-ramp for institutional capital into DeFi, which will get decentralized systems more integrated with traditional finance.

The blockchain will support both tokenized assets and natively developed DeFi applications, with a particular focus on regulatory compatibility. Converge is set to come out later this quarter, making Securitize a hub infrastructure provider in the tokenized asset space.