Cathie Wood’s ARK Invest is diving headfirst into the tokenization wave, solidifying its position with a strategic stake in Securitize, a company at the forefront of bringing traditional assets onto blockchain systems. As Wall Street accelerates its foray into the digital transformation of financial instruments, ARK’s move underscores the growing interest in tokenization as a pivotal innovation in the financial sector.
ARK’s Strategic Positioning
ARK Invest, helmed by the visionary CEO Cathie Wood, is renowned for its forward-thinking investments in disruptive technologies. The ARK Venture Fund (ARKVX), an actively managed fund, recently disclosed that 3.25% of its assets are now invested in Securitize. This makes Securitize the eighth largest holding in the fund, trailing behind high-profile AI companies like X.AI and Anthropic. With net assets under management reported at $325.3 million as of September 30, ARK’s stake in Securitize is estimated to be around $10 million, highlighting its significant commitment to the burgeoning field of tokenization.
The Tokenization Trend
Tokenization is rapidly becoming a buzzword in the financial world, offering the promise of transforming traditional financial instruments—such as bonds, stocks, and funds—into digital assets on blockchain platforms. The advantages are compelling: reduced settlement times, expanded investor access, and markets that operate 24/7. It’s no surprise that global banks and asset managers are racing to harness these benefits.
The potential is immense. The tokenized asset market has already grown by 112% this year, reaching a valuation of $33 billion, according to data from RWA.xyz. Projections suggest this could skyrocket to a staggering $18.9 trillion by 2033, as forecasted by Ripple and Boston Consulting Group (BCG) earlier this year. ARK’s investment in Securitize positions it well to capitalize on this expected growth.
Securitize: A Pioneer in Tokenization
Founded in 2017 and led by CEO Carlos Domingo, Securitize has established itself as a trailblazer in the tokenization sector. The company’s impressive track record includes issuing $4.6 billion in tokenized assets, collaborating with financial titans such as BlackRock, Hamilton Lane, and Apollo. One of its flagship projects is the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a tokenized money market fund that dominates the tokenized U.S. Treasury sector with $2.8 billion in assets.
Securitize’s innovative approach extends beyond traditional finance. In 2022, it made waves by creating on-chain shares for the listed wallet provider Exodus. More recently, it entered an agreement with ether (ETH) treasury firm FG Nexus (FGNX) to transition its common and preferred stock onto the Ethereum blockchain, showcasing the versatility and potential of tokenization in the equities market.
A Broader Perspective
ARK’s investment in Securitize is not an isolated event. It follows a successful $47 million fundraising round for Securitize last year, led by major players like BlackRock and Hamilton Lane. Other notable participants included ParaFi Capital and Tradeweb Markets, further underscoring the widespread confidence in Securitize’s capabilities and the promising future of tokenization.
From a broader perspective, ARK’s move aligns with a growing trend among asset managers and financial institutions to embrace blockchain technology. The push towards tokenization is part of a larger effort to modernize the financial industry, making it more efficient, transparent, and accessible.
Balancing Optimism with Caution
While the prospects of tokenization are undoubtedly exciting, it’s important to approach this emerging field with a balanced perspective. The rapid pace of innovation in blockchain technology brings with it challenges, including regulatory hurdles, technological risks, and market volatility. As the industry matures, stakeholders will need to navigate these complexities to ensure sustainable growth and adoption.
Despite these challenges, the enthusiasm for tokenization continues to build. Cathie Wood’s ARK Invest, with its strategic stake in Securitize, is well-positioned to be at the forefront of this financial revolution. As the landscape evolves, ARK’s bold bet on tokenization reflects its commitment to identifying and investing in transformative technologies that have the potential to reshape the future of finance.
In conclusion, ARK Invest’s investment in Securitize is a testament to the growing momentum behind tokenization. With its potential to revolutionize how assets are traded and managed, tokenization represents a significant opportunity for financial innovation. As Wall Street and global markets increasingly embrace blockchain technology, the journey towards a tokenized financial ecosystem is only just beginning—and ARK Invest is poised to be a key player in this exciting evolution.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
