Ironlight raises $21M to expand regulated infrastructure for tokenized securities

Ironlight Group has raised $21 million in a Series A round to expand infrastructure for tokenized securities, joining a rapidly growing sector that aims to bring traditional financial assets onto blockchain networks.

The financing was backed by senior Wall Street executives including former TD Bank President and CEO Greg Braca, alongside institutional investors such as Sei Development Foundation and Laidlaw Private Equity.

The funds will support the expansion of Ironlight Markets, a regulated alternative trading system designed to integrate issuance, distribution, and trading of tokenized assets.

The platform operates under SEC Regulation ATS and oversight from the Financial Industry Regulatory Authority, allowing it to support tokenized versions of assets such as private equity, fixed income, structured products, private credit, and real estate.

The system combines traditional brokerage infrastructure with blockchain-based settlement, designed to streamline post-trade workflows for institutional investors.

CEO Rob McGrath said the goal is to modernize capital markets infrastructure while maintaining compatibility with existing regulatory frameworks.

Ironlight’s push comes as interest in tokenized securities accelerates across both traditional finance and crypto markets. Tokenization converts real-world assets such as stocks, bonds, or real estate into blockchain-based tokens that represent ownership rights, allowing them to be traded and settled digitally.

Data from RWA.xyz shows the tokenized equity market has surpassed $1 billion in total value on blockchain networks. Platforms tied to Ondo Finance currently control roughly 58 percent of that market, while tokenized stock products issued under the xStocks platform account for about 24 percent, forming an early duopoly in the sector.

Exchanges are also beginning to integrate these products into their platforms. Kraken has introduced tokenized versions of more than 50 stocks and ETFs for international users, enabling near continuous trading and blockchain based settlement.

Traditional financial institutions are moving in the same direction. The parent company of the New York Stock Exchange has begun developing infrastructure for round-the-clock trading of tokenized securities using blockchain rails, highlighting growing demand for faster settlement and global market access.

Investors backing the round argue that the remaining challenge is no longer tokenization itself but building compliant infrastructure that large financial institutions can safely adopt.