Tokenized equities platform xStocks has partnered with alternative investment firm Fundrise to introduce the recently public Fundrise Innovation Fund onchain, aiming to broaden access to investments in late-stage private market companies.

The single tokenized asset VCXx is projected to become available on the xStocks platform shortly, per an announcement made on Friday. This partnership materializes just days after the closed-end fund began its trading on the New York Stock Exchange. Its investment portfolio includes stakes in private tech firms such as Anthropic, Databricks, and SpaceX.

In the initial trading days, the stock’s price surged from its debut price of $31 on March 19 to a peak of $575 per share. However, a critical report released by Citron Research indicated that Fundrise Advisors LLC had faced SEC action in 2023 due to issues related to paid solicitation activities. Citron also urged regulators to investigate whether the firm is compensating influencers to promote VCX.

By the end of the week, the shares fell to $173, a decrease of nearly 34% on Friday, followed by an additional 5.9% drop in after-hours trading.

Ben Miller, co-founder and CEO of Fundrise, defended the firm’s strategy and initiatives to facilitate access to private tech companies, asserting that the criticisms were unfounded. Watch CNBC’s interview with Ben Miller here.

Earlier this month, tokenized stocks attained a total onchain value exceeding $1 billion as investor attraction in the burgeoning real-world asset (RWA) sector increases. Reports indicate that Ondo commands about 58% of this market, while products from xStocks represent around 24%, establishing a nascent duopoly within the industry. Data from Foresight Ventures suggests the market is consolidating around these main players, influenced by regulatory challenges, liquidity benefits, and varying tokenization strategies.