Securitize buys River One to tap $6T asset-backed finance market
What's the deal? Securitize, the Miami-based tokenization platform, is acquiring institutional asset-backed financing company River One for undisclosed terms. The move extends Securitize beyond issuing and servicing tokenized assets into warehouse financing, connecting stablecoin capital with traditional lending markets.
What's the endgame? River One is building technology to link stablecoin capital with traditional asset-backed lending. Securitize sees a chance to modernise the market using stablecoins to finance real-world assets, generate yield, and tokenise credit products.
Why now? The deal, announced alongside quarterly results, marks a push beyond Securitize's core niche as tokenisation's competitive landscape grows. Traditional asset managers like BlackRock and Franklin Templeton, plus infrastructure providers such as DTCC and Broadridge, are entering the industry.
The numbers: Third-quarter revenue rose 13% to $18.6 million, and transaction volume climbed 20% to $4.3 billion. But profitability remains below year-ago levels: adjusted EBITDA swung to a $2 million loss from a $3.6 million profit, and the company posted a $66.3 million net loss that included about $60 million of largely non-cash listing-related charges.
What's behind the costs? Securitize went public in July, reinforcing finance, compliance, legal, and cybersecurity functions. "We're in a very good position. The adjusted EBITDA … is improving significantly from previous quarters," chief executive officer Carlos Domingo told CNBCDealroom has a profile for this one. Try Dealroom →. The adjusted EBITDA loss narrowed from $5.5 million in the second quarter.
What could go wrong? Securitize still has to show the expansion can generate durable profits. Operating costs and expenses jumped 183% from a year ago as it scaled during an active period for the sector.
The signal: The acquisition is a strategic bet on financing and utility, not just issuance, as tokenisation moves into mainstream market infrastructure. "This adds another piece of the puzzle in the emerging tokenization space for us to capture revenue growth," Domingo said.
Read more: CNBC
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