Securitize Expands Its Reach with Onramp Invest Acquisition
This strategic move is set to bolster Securitize’s position in the market, given Onramp’s significant influence in the U.S., managing assets worth over $40 billion.
Securitize’s primary product focuses on enhancing liquidity and transparency by transitioning private investments to renowned public blockchains, including Ethereum, Avalanche, Polygon, and Algorand.
A Closer Look at the Acquisition
Onramp Invest, on the other hand, collaborates with leading digital asset firms such as WisdomTree, CoinDesk, Global X, and Valkyrie Invest, specializing in the creation of crypto indexes. With its extensive network of Registered Investment Advisors (RIAs) across the U.S., this acquisition will empower these RIAs to diversify their portfolios, offering clients a range of alternative asset investment opportunities. These include private equity, private credit, secondaries, and real estate.
Carlos Domingo, Securitize’s CEO, expressed his enthusiasm about the acquisition, emphasizing its potential to revolutionize private capital markets. He stated, “Onramp’s existing infrastructure, which provides RIAs with easy access to digital assets, aligns perfectly with our vision. This acquisition will enable us to offer tokenized alternative assets, further enriching their portfolios.”
Tokenization: The Future of Finance
The acquisition highlights the growing trend of merging traditional finance mechanisms with innovative digital asset solutions. Tokenization, in particular, is gaining traction as a transformative force in the financial world. BlackRock’s CEO, Larry Fink, last December, labeled tokenization as the “next generation for markets.”
Eric Ervin, Onramp Invest’s CEO, echoed this sentiment, praising Securitize for its competitive offerings, including lower fees, minimal investment thresholds, and the potential for exit liquidity via secondary markets. He emphasized the pivotal role tokenization is set to play in the investment landscape, urging all financial professionals to adapt to this evolution.
Securitize’s Ambitious Path Forward
Earlier this year, Securitize and Onramp had formed a partnership, granting RIA members access to private equity feeder funds provided by Securitize, in collaboration with investment giants like KKR and Hamilton Lane.
This acquisition of Onramp Invest further solidifies Securitize’s ambitious trajectory, especially following its recent announcement about issuing tokenized securities in Europe.