Ark Invest, an asset management company led by CEO Cathie Wood, is leaning towards a tokenization boom as tokenization experts secured it as a Wall Street race and turned its assets on-chies.
ARK Venture Fund (ARKVX) is an ARK closed-end, aggressively managed fund investing in public and private companies, holding 3.25% of its assets in securitization, following X.AI and humanity, following the fund's artificial intelligence (AI) companies, according to the fund's latest disclosure on September 30th.
As of September 30, the net assets under management based on the fund's $325.3 million managed assets should value ARK's securitization interest at approximately $10 million, according to Coindesk's calculations.
The Ark investment is born as one of the hottest trends in crypto, bringing traditional financial products such as bonds, funds and stocks to the blockchain rail. Global banks and asset managers are looking tokenize to reduce payment times, increase investor access and keep the market open 24 hours a day.
It is a potentially huge opportunity. The tokenized asset market has grown to $33 billion, up 112% per year, with data from RWA.xyz showing that it could swell to $18.9 trillion by 2033, with Ripple and BCG forecast earlier this year.
Founded in 2017 and led by CEO Carlos Domingo, Securitize is one of the early pioneers of the tokenization space. They have worked with traditional financial giants such as BlackRock, Hamilton Lane and Apollo to issue $4.6 billion tokenized assets. He is also known as the publisher behind BlackRock USD Institutional Digital Liquitidity Fund (BUIDL), a tokenized money market fund.
The company also created an on-chain share for the listed wallet provider's Exodus in 2022, and is working to turn it into an equity token, which has concluded an agreement with Ether. ETH$4,005.03 Finance company FG Nexus (FGNX) will introduce its common and preferred stock into the Ethereum blockchain.
ARK's investments are followed by Securitize's $47 million funding round led by BlackRock and Hamilton Lane (HLNE), along with Parafi Capital and TradeWeb Markets (TW).
