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Securitize expanded its regulated US platform after its capital subsidiary registered with the SEC, while SECZ shares fell nearly 10% on Monday.<\/p>\n
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Securitize said<\/a> Monday that its subsidiary, Securitize Capital LLC, has registered with the US Securities and Exchange Commission as an investment adviser.<\/p>\n The registration became effective on July 22, according to the SEC\u2019s Investment Adviser Public Disclosure database<\/a>. The Miami-based business had operated as an exempt reporting adviser in Florida since March 2023.<\/p>\n That earlier status generally restricted the unit to advising venture capital funds or private funds with less than $150 million in US assets under management. Full registration removes those limits but brings additional disclosure, compliance, recordkeeping and examination duties under the Investment Advisers Act of 1940.<\/p>\n \u201cBecoming an SEC-registered investment adviser is an important step in the continued expansion of Securitize\u2019s platform,\u201d co-founder and CEO Carlos Domingo said.<\/p>\n \u201cAsset managers and institutional investors want to work with partners that understand both the opportunity of tokenization and the obligations that come with operating in regulated markets.\u201d<\/p>\n<\/blockquote>\n The company noted that registration does not represent an SEC endorsement or indicate a particular level of skill or training.<\/p>\n <\/p>\n Securitize Capital\u2019s registration completes a broader group of regulated services covering the issuance, management and trading of tokenized securities.<\/p>\n Securitize Markets operates as an SEC-registered broker-dealer and runs an SEC-regulated alternative trading system. Other affiliates provide transfer-agent and fund-administration services. FINRA also approved Securitize Markets in May to custody tokenized securities and support atomic settlement.<\/p>\n The expanded structure could allow Securitize to work more closely with asset managers building onchain vaults, lending products and other portfolio strategies. The company reported more than $5 billion in assets under management as of July across products linked to BlackRock, Apollo, BNY, Hamilton Lane, KKR and VanEck.<\/p>\n BlackRock\u2019s BUIDL tokenized Treasury fund accounts for about $2.6 billion of that total.<\/p>\n The registration follows SEC Commissioner Hester Peirce\u2019s July 22 warning that managing certain vaults and lending strategies may create investment adviser obligations. Peirce urged businesses operating within the securities market to engage with the regulator while developing compliant onchain products.<\/p>\n SECZ shares fell over 10% during Monday trading to about $6.76, giving Securitize a market capitalization of slightly under $1 billion per data<\/a> from Yahoo Finance. The decline extended the stock\u2019s losses since its New York Stock Exchange debut earlier in July.<\/p>\n Citi analyst Peter Christiansen separately initiated coverage with a Buy rating and a $10 price target. The target represented about 34% upside from Friday\u2019s closing price of $7.47.<\/p>\n\n
SEC status expands Securitize\u2019s US regulatory stack<\/h2>\n
SECZ falls despite Citi\u2019s bullish price target<\/h2>\n