Securitize to buy River One in push into $6 trillion asset-backed finance market
Securitize agrees to acquire River One to enter asset-backed lending
Tokenization firm Securitize (SECZ) said it agreed to acquire River One, a New York-based institutional financing firm, as it moves into the asset-backed finance market. The company put the size of that market at $6 trillion. The deal was announced on Monday at the same time as Securitize's third-quarter earnings.
Tokenization is the practice of issuing traditional securities, such as funds or bonds, on a blockchain, which is a shared digital record of transactions. Securitize provides issuance, transfer agency and fund administration services for these tokenized securities. Its clients include BlackRock, Apollo, KKR, Hamilton Lane and VanEck.
Key facts from the announcement
- Securitize agreed to acquire River One, which adds warehouse financing to its business. Warehouse financing lets firms borrow against pools of loans or other assets before those assets are sold or refinanced.
- Financial terms of the deal were not disclosed. The deal is expected to close in the fourth quarter.
- Third-quarter revenue rose 13% to $18.6 million. The company reported a net loss of $66.3 million, which included about $60 million in largely non-cash expenses and accounting charges.
- Securitize announced a $50 million share buyback program.
- SECZ shares rose about 10% in after-hours trading after the announcements, but remain roughly 50% below their late-September level.
What the company and the deal backers say
According to the announcement, Securitize CEO Carlos Domingo described credit as one of the most exciting emerging asset classes for blockchain-based financial markets and said acquiring River One is an important step for the company.
River One was incubated by crypto investment firm Framework Ventures and also received backing from blockchain lending platform Maple Finance. A blockchain lending platform provides loans using blockchain technology.
The market Securitize is moving into
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. These projections come from KKR's report and are estimates, not confirmed outcomes.
How the deal fits Securitize's plans
Securitize became a public company on the New York Stock Exchange in July. At that time, CEO Carlos Domingo told CoinDesk the company planned to use its roughly $400 million in available funds for acquisitions, focusing on businesses that would expand its institutional tokenization platform rather than buying competitors.
The River One acquisition follows that plan by adding lending and financing capabilities to Securitize's existing business. The company was founded in 2017 and is based in Miami, Florida.
What is confirmed and what is not
Confirmed from the announcement and earnings: the acquisition agreement, the $50 million buyback, the quarterly revenue and net loss figures, and the expected fourth-quarter closing. Financial terms of the deal were not disclosed, so the purchase price is unknown. The market size figures are estimates from a KKR report, not measurements of guaranteed future growth.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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