- Securitize, an asset tokenization firm, has successfully issued the first tokenized equities under the European Union’s pilot regime for digital assets.
- The issued tokens symbolize equity in Spanish real estate investment trust Mancipi Partners, with secondary market trading of these equity tokens set to begin in September.
As the landscape of investment products evolves, Securitize, a leader in asset tokenization, recently initiated the issuance of the first tokenized equities under the European Union’s pilot scheme for digital assets. The tokens issued through the Avalanche (AVAX) smart contract network represent an equity stake in the Spanish real estate investment trust, Mancipi Partners, monitored within the testing environment of Spain’s securities regulator (CNMV). According to Securitize, secondary market trading of these equity tokens will commence in September.
Connecting Traditional and Digital Capital Markets
This issuance illustrates the increasingly entwined relationship between traditional capital markets and the world of cryptocurrency. By encapsulating age-old investment products like private equity and debt within blockchain applications as tokens, a transformational disruption to the existing financial infrastructure could be on the horizon. Bank of America (BAC) has highlighted the potential for tokenization to foster a more efficient financial ecosystem. Boston Consulting Group’s report anticipates the market for tokenized assets to escalate to a whopping $16 trillion by 2030.
Carlos Domingo, Co-founder and CEO of Securitize, emphasized the innovation’s benefits for European enterprises. He stated,
“European businesses will be a major beneficiary of this innovation, giving businesses a new way to raise capital through primary capital raises, and obtain potential tax benefits and liquidity through secondary trading.”
Securitize is no stranger to the field of tokenization. The company previously tokenized investment funds of asset managers Hamilton Lane and KKR in the United States. Moreover, it expanded its footprint to Europe by entering Spain’s regulatory test environment for digital assets last summer.
According to the firm, this tokenized equity issuance is the first of its kind under the EU’s Distributed Ledger Technology (DLT) pilot regime, aimed at cultivating a regulated environment for trading securities such as equities and bonds using blockchain technology.
