Securitize: The Ex-Telefónica Executive Tokenizing Finance with BlackRock’s Backing
Miami, FL – Securitize, a financial technology firm pioneering the tokenization of assets, is preparing for a public listing valued at $1.25 billion, buoyed by a shifting regulatory landscape in the United States and a key partnership with asset management giant BlackRock. The company, founded in 2017, is led by Carlos Domingo, a former executive at Telefónica I+D.
The impending initial public offering (IPO), structured as a special purpose acquisition company (SPAC) merger, marks a potential turning point for the tokenization industry, which has struggled to gain widespread adoption despite years of promise. Tokenization, the process of converting rights to an asset into a digital token on a blockchain, aims to increase efficiency, accessibility, and liquidity in financial markets.
Domingo attributes his interest in the technology to a personal frustration with the traditional financial system. “When I left Telefónica, I wanted to sell shares and the process took two or three weeks. That made me realize the financial system has inefficiencies that don’t make sense in today’s world,” he stated in a recent press briefing.
Securitize’s trajectory has been marked by regulatory hurdles, particularly in the United States. Domingo acknowledged the challenges, describing years spent navigating a complex licensing process. “I didn’t fully understand the importance of regulation in this industry,” he said. The company now operates with the necessary licenses, positioning it as a regulated infrastructure provider rather than a purely crypto-focused startup.
A pivotal moment for Securitize came in March 2024 with the launch of a tokenized fund in partnership with BlackRock. According to Domingo, the product rapidly grew to approximately $2 billion, attracting significant attention within the financial industry. “When BlackRock does something, the rest of the market pays close attention,” he noted.
The company’s planned IPO coincides with a more favorable political climate in the U.S. Domingo indicated that the previous administration’s regulatory stance had effectively blocked such a listing, while the current administration has adopted a more permissive approach. He also revealed frequent visits to Mar-a-Lago and regular contact with members of the President’s family, though he dismissed suggestions of undue influence.
“I don’t believe Donald Trump pushed for this regulatory change for his children to make more money,” Domingo asserted. “I suppose it’s a strategic decision to position the United States as a leader in this industry.” Securitize currently maintains business relationships with some of Donald Trump’s children.
Despite the anticipated revenue growth – Securitize projects exceeding $110 million in revenue this year – Domingo cautioned against expecting rapid, wholesale transformation of the financial sector. “This isn’t something that will happen in two or three years. We’re talking about a process that could take ten, twenty, or even forty years to fully transform the financial infrastructure,” he said. He anticipates the tokenized asset market will grow to at least two trillion dollars, even using the most conservative analyst estimates.
Securitize’s future hinges on continued regulatory clarity and broader institutional adoption. The company’s leadership maintains that the long-term potential of tokenization remains significant, despite past setbacks and the lingering shadow of previous crypto market collapses.