Securitize Loses 20% as Tokenization Business Misses Revenue Expectations

Securitize posted record levels of tokenized assets and transaction volume, but its revenue declined in the company’s first earnings report since becoming publicly traded.

Shares of Securitize (SECZ) plunged 20% in after-hours trading Wednesday after the tokenization firm reported second-quarter results below analyst expectations.

The company generated $14.4 million in revenue, down 5% year over year and well below Wall Street’s $20.6 million estimate.

Securitize recorded a $2.37 loss per share, compared with analysts’ forecast of a $0.15 loss. Net losses reached $21.7 million, while adjusted EBITDA swung to a $5.5 million loss from a $1.8 million profit in the same period last year.

The results come as tokenization has attracted growing interest from Wall Street, with financial institutions increasingly putting funds, equities and other traditional assets on blockchain networks. Securitize has emerged as a major infrastructure provider in that market, although the latest results show that higher adoption has yet to produce consistent revenue growth.

CEO Carlos Domingo described the quarter as “softer” while emphasizing the company’s stronger performance during the first half of the year. Revenue for the first six months increased 16% from a year earlier, helped by record first-quarter revenue of $19.5 million.

Tokenized Assets Reach Record Levels

Despite the revenue shortfall, activity across Securitize’s platform continued to expand.

Average tokenized assets under management increased 16% year over year to a record $4.3 billion. Transaction volume surged 147% to $5.3 billion.

The company’s fund-services division oversaw 663 active funds with $24.3 billion in assets under administration.

Securitize provides technology that enables asset managers to issue and administer traditional investment products as blockchain-based tokens. Its customers include major financial institutions such as BlackRock and KKR, placing the company at the center of Wall Street’s growing tokenization push.

BUIDL, the tokenized Treasury and money-market fund launched with BlackRock in 2024, has grown into one of the largest tokenized financial products.

Securitize is also collaborating with the New York Stock Exchange on infrastructure designed to support tokenized securities trading. The company has partnered with Computershare as well to enable U.S. companies to issue tokenized shares.

The earnings report marked Securitize’s first quarterly update since it became a public company following its July merger with a Cantor-backed special purpose acquisition company.