Securitize, the Miami-based digital assets platform, announced $19.5 million in revenue for the first quarter of 2024, marking an impressive 39 percent year-on-year increase. This figure represents the company’s highest-ever quarterly revenue, underscoring its rapid expansion in the digital assets and tokenization sector.
Asset services and tokenization drive results
Revenue from Securitize’s asset services division surged by 201 percent compared to the same quarter last year, reaching $8.3 million. The growth of Securitize Fund Services was especially notable, as the platform reported serving 650 active funds as of the end of March. Meanwhile, tokenization revenues were recorded at $11.1 million, a slight uptick from $11 million in the previous year’s first quarter.
By the end of the quarter, the total volume of tokenized assets under management climbed to $3.4 billion. The overall value of all assets overseen by the company hit $24.9 billion, while total transaction volume reached $1.9 billion—highlighting the scale at which Securitize operates.
Profitability remains under pressure
Despite robust revenue growth, Securitize ended the quarter with a loss, citing rising operational expenses and preparations for an initial public offering. The net loss increased to $7.9 million, or 88 cents per share. Adjusted EBITDA, a key measure of operating profitability, fell to $800,000, down from $4.1 million in the same period last year.
Chief Financial Officer Francisco Flores stated that the company continued investing in personnel and infrastructure as part of its growth strategy, while maintaining spending discipline throughout the quarter.
SPAC merger and path to public offering
Securitize took a major step toward becoming a publicly listed company by entering into a merger agreement with Cantor Equity Partners II (CEPT), a Nasdaq-listed special purpose acquisition company (SPAC). This transaction will position Securitize among a select group of publicly traded firms dedicated to tokenization. CEPT shares rose by 5 percent on Wednesday following the announcement.
Mini glossary: What is a SPAC (Special Purpose Acquisition Company)? A SPAC is a type of corporation created for the sole purpose of merging with another firm, commonly resulting in that firm’s public listing. The model has become especially popular in recent years across technology and finance sectors.
In the company’s quarterly report, Securitize emphasized, “To support long-term growth and prepare for our public listing process, we increased our investments in talent and infrastructure, while maintaining a disciplined approach to cost management.”
Once the merger is complete, Securitize aims to strengthen its leadership position in the tokenization of real-world assets and securities—a sector gaining traction among both traditional and crypto-savvy investors.
