Securitize taps Wormhole to boost cross-chain tokenization for institutional assets



Securitize has partnered with Wormhole Foundation to enable cross-chain interoperability for all assets tokenized on its platform, according to a Sept. 20 announcement.

The partnership will make Wormhole the official blockchain interoperability provider for Securitize’s current and future tokenized assets, marking a significant step forward in the tokenization and cross-chain interoperability of digital assets.

As a result, Securitize can connect its tokens to 32 blockchains available on Wormhole’s infrastructure, boosting its cross-chain features. The company is the tokenization infrastructure provider for institutions such as BlackRock and Hamilton Lane.

The collaboration aims to facilitate institutional adoption and bridge the gap between traditional and decentralized financial systems by allowing asset issuers using Securitize’s tokenization platform to seamlessly transfer tokens across various blockchain ecosystems.

This is expected to enhance liquidity and accessibility for tokenized assets, offering investors greater flexibility in managing their digital assets across multiple blockchains.

Securitize co-founder and CEO Carlos Domingo emphasized that tokenized versions of real-world assets (RWA) must thrive on public, permissionless blockchains to fully realize blockchain technology’s potential.

Securitize plans to integrate its customized smart contracts with Wormhole’s secure, open-source interoperability platform, creating tailored solutions that meet the needs of specific asset managers and comply with regulations. Platform users can expect increased trust, flexibility, and legitimacy in cross-chain activities, which are underpinned by Securitize’s compliance expertise.

Wormhole Foundation co-founder and COO Robinson Burkey said the integration with a cross-chain messaging protocol paves the way for the institutional adoption of tokenized assets. He called it a “significant moment” for bridging traditional finance and DeFi.

An issue to be addressed

The tokenized US Treasuries market is commonly used to gauge the health of the RWA tokenization sector. According to RWA.xyz data, the market is currently sized at over $2.2 billion.

BlackRock’s tokenized fund, BUIDL accounts for a significant portion of the market cap with roughly $522 million is assets under management (AUM). All of BUIDL’s shares are deployed on the Ethereum blockchain.

Furthermore, funds such as TBILL, OUSG, and USDY are also deployed on Ethereum, representing a total of $1.6 billion in tokenized US Treasuries on the network.

Stellar holds the second largest market share due to hosting the the second-largest tokenized fund by market share, Franklin Templeton’s FOBXX, while Solana comes in third with $69.2 million in tokenized assets.

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