coindesk.com
Tokenization firm Securitize (SECZ) said it agreed to acquire River One, a New York-based institutional financing firm, as it looks to expand into a $6 trillion asset-backed financing market.
The deal, announced Monday alongside Securitize's third-quarter earnings, would add warehouse financing capabilities to its business. Such financing lets firms borrow against pools of loans or other assets, providing capital before those assets are sold or refinanced. The private asset-backed finance market was estimated at $6.1 trillion in 2024 and is projected to exceed $9 trillion by 2029, according to a report by global investment firm KKR.
River One was incubated by crypto investment firm Framework Ventures and also received backing from blockchain lending platform Maple Finance SYRUP$0.1346. Financial terms were not disclosed. The deal is expected to close in the fourth quarter.
Securitize has emerged as a key infrastructure provider in the bustling tokenization market, helping asset managers issue traditional securities on blockchain rails. Founded in 2017 and based in Miami, Florida, the company provides issuance, transfer agency and fund administration services for tokenized securities, with clients spanning BlackRock, Apollo, KKR, Hamilton Lane and VanEck.
The River One deal follows Securitize becoming a public company on the New York Stock Exchange in July. At the time, CEO Carlos Domingo told CoinDesk that the company planned to use its roughly $400 million war chest for acquisitions, focusing on businesses that would expand its institutional tokenization platform rather than buying competitors.
The River One acquisition marks a step toward that strategy, adding lending and financing capabilities to Securitize's existing business.
“Credit is one of the most exciting emerging asset classes for blockchain-based financial markets, and acquiring River One represents an important step in expanding our business into this space,” Securitize CEO Carlos Domingo said in a statement.
The company reported $18.6 million in quarterly revenue, up 13% from a year earlier, while its net loss reached $66.3 million. About $60 million of that loss stemmed from largely non-cash expenses and accounting charges, mainly tied to its public listing and business combination, the firm said.
Average tokenized assets on its platform reached $5 billion, up 39% year-over-year, while transaction volume climbed 20% to $4.3 billion.
Securitize also announced a $50 million share buyback program running through December 2027. The company ended September with about $300 million in cash and no debt.
