Securitize Gets EU Green Light, Plans Tokenized Securities Platform on Avalanche

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Securitize, the tokenization specialist backed by BlackRock and Ark Invest, has received full regulatory approval to launch a digital trading and settlement system in the European Union (EU), as tokenized assets are rapidly growing.

With the green light from regulators, the firm claims the bragging rights to become the only firm authorized to operate licensed tokenized securities infrastructure in both the EU and the United States.

The company also plans to roll out a new European platform that will run on the Avalanche (AVAX) network, a public blockchain known for fast transaction finality and support for purpose-built chains. Securitize said it expects the first EU-based issuance to go live early next year.

"This approval connects two of the world’s biggest financial markets," Securitize CEO Carlos Domingo said in an emailed statement. "Now, issuers and investors on both sides of the Atlantic can engage in digital finance under one compliant framework."

Tokenization, the process of creating digital tokens of traditional financial (TradFi) instruments onchain, has gained traction among institutions looking to modernize how securities are issued, traded and settled. Advocates say it could cut costs, reduce settlement risk and allow assets to move more freely across borders. Tokenized assets could become a $18 trillion market by 2033 as more assets migrate onchain, BCG and Ripple projected.

Securitize's EU approval was granted with input from the region's multiple regulators, including the Spanish securities authority (CNMV), the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB), the firm said. It allows Securitize to operate a digital system that combines the roles of a trading venue and a securities depository, similar to what the Nasdaq and DTCC provide in traditional markets.

Securitize plans to use the new platform to issue and manage digital versions of TradFi assets such as equity, debt and funds under strict regulatory oversight.

The firm recently unveiled plans to go public in the U.S. through a SPAC merger at a $1.25 billion valuation.

Read more: Société Générale’s SG-FORGE Issues First Tokenized Bond in U.S.