Securitize, a prominent tokenization platform responsible for various blockchain-based investment offerings, is reportedly negotiating a merger with Cantor Fitzgerald’s SPAC. This deal, according to Bloomberg, may soon lead Securitize to become one of the first significant tokenization firms to trade publicly, signaling heightened interest from Wall Street in onchain finance.

According to sources familiar with the matter, if the merger proceeds, Securitize’s valuation could exceed $1 billion.

The company has not yet issued a public response to requests for comments from media outlets.

A Special Purpose Acquisition Company (SPAC) is essentially a shell company that is publicly listed, which raises funds with the intention of acquiring a private entity. This method allows the targeted company to go public without the lengthy initial public offering (IPO) route.

Other cryptocurrency-focused companies have taken similar paths, including Bakkt and Core Scientific, which entered the public market through SPAC mergers.

Furthermore, Securitize’s recent fundraising efforts include a $47 million round led by BlackRock, with contributions from companies such as Paxos and Circle.

SPAC discussions reveal increasing institutional push for tokenized RWAs

This potential SPAC deal emphasizes the robust interest in onchain finance. Industry data shows that over $33 billion in real-world assets have been tokenized, driven largely by private credit and US Treasury bonds.

Notably, institutions like BNY Mellon and Goldman Sachs are also deepening their commitment to tokenization, with recent announcements concerning tokenized deposits and money market funds.

S&P Global is set to launch a new Digital Markets 50 Index to track cryptocurrency and blockchain-related equities, further indicating the growing institutional embrace of the crypto sector.