Securitize Corp. (NYSE:SECZ) climbed to a new all-time high on Thursday—the third time this week—as investors resumed buying positions after sealing a deal with ARK Invest for the tokenization of ARK Venture Fund (ARKVX).
The agreement marked its first tokenization contract since the Securities and Exchange Commission (SEC) issued what it called the Innovation Exemption, which allows the tokenized representation of traditional securities.
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ARK Venture to Become Available on Ethereum
The ARK Venture Fund is set to become available on Ethereum, ARK Invest said. It is an actively managed closed-end interval fund that seeks long-term growth of capital by investing across private and public companies aligned with disruptive innovation. Its portfolio includes investments in technology and innovation entities such as OpenAI, Anthropic, Stripe, and Databricks, among others, giving eligible investors seeking to establish exposure in the said firms the option to instead opt for tokenized shares through blockchain-based infrastructure.
“Tokenizing the ARK Venture Fund puts our conviction in the evolution, if not revolution, of capital markets into practice,” ARK Invest CEO Cathie Wood said.
“Based on our research, tokenization has the potential to reshape fundamentally the way that investors access and participate in both private and public financial markets. Making the ARK Venture Fund available onchain is a natural extension of our mission to democratize access to technologically enabled disruptive innovation. Because it has built the regulated infrastructure to help make that vision a reality, we are excited to partner with Securitize in taking this important step forward,” she added.
Upon release, tokenized ARKVX will be available on Ethereum, with Securitize providing the infrastructure supporting its onchain issuance and investor experience.
Analysts Highly Bullish
Following the SEC’s rules issuance on tokenized securities, Securitize Corp. has gained bullish recommendations from two investment firms, namely Cantor Fitzgerald and Rosenblatt.
Cantor Fitzgerald initiated a buy recommendation on the stock, alongside a price target of $21.20, citing the latter’s position in the tokenization of traditional equities.
Traditional financial assets currently total $319 trillion worldwide, with only $39 billion, or 0.01 percent of the total, currently on-chain. This creates a major opportunity for Securitize Corp. in traditional equities that have yet to be tokenized.
The listed firm manages around $5 billion of tokenized assets under management across 23 public blockchains, and operates various services such as issuing, registering, custodying, distributing, and enabling trading, among others.
Rosenblatt, for its part, recommended investors buy its shares, while conservatively raising its price target to $13 from $11 previously, citing the SEC’s new Innovation Exemption as a significant catalyst which removed the largest regulatory obstacle to on-chain trading in US equities.
Rosenblatt noted additional potential upside for Securitize Corp., such as the SEC’s recent proposal to modernize rules on transfer agents. It said that it was confident of the listed firm’s ability to execute on its leadership position and monetize the opportunity.
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