A Game-Changer in the Investment Landscape

In an intriguing move that has stirred the investment waters, tokenized asset firm Securitize announced its acquisition of the cryptocurrency fund manager Onramp Invest. With more than $40 billion in assets under management (AUM), this strategic partnership aims to simplify access to private equity, private credit, and secondary asset classes for registered investment advisers (RIAs).

Details of the Acquisition

While the cost of the acquisition remains shrouded in mystery—at least until Securitize decides to spill the beans—one thing is clear: the combined might of Securitize and Onramp boasts a robust workforce. Securitize entered the merger with 150 employees, while Onramp added its own 18 team members to the mix.

Unlocking Opportunities for RIAs

The merger isn’t just corporate fluff; it’s set to unlock new avenues for RIAs looking to bolster their clients’ portfolios. With Onramp’s platform, RIAs can now offer investments in alternative asset classes directly via a user-friendly dashboard, making financial diversification feel less like a trip to the dentist and more like a day at the amusement park!

Who Benefits?

• RIAs: Access to tokenized alternative assets enhances portfolio capabilities.
• Clients: Opportunity to invest in private equity and real estate.
• Crypto Firms: Onramp’s partnerships with firms like WisdomTree and Global X enrich the investment ecosystem.

Words from the CEO

Securitize CEO Carlos Domingo elaborated on the acquisition’s potential, mentioning, “Most wealth is generated in private market alternative assets…bringing Securitize and Onramp together enables registered investment advisers to give their clients access to that wealth generation.” And who wouldn’t want a piece of that wealth pie?

Previous Collaborations and Future Plans

This acquisition isn’t just a shot in the dark; it builds on a previous partnership established in March 2023, where Securitize and Onramp worked together to increase access to tokenized private equity funds from reputable investment firms such as Hamilton Lane. With plans for secondary trading on the Avalanche blockchain slated for launch in September, the future looks bright for this newly enlarged entity.

Wrapping Up

In a world where traditional investment avenues can feel like navigating a maze, Securitize and Onramp are here to throw in a map. If you’re a RIA or an investor with a curious mind, the world of tokenized assets is expanding, and it’s up to you to seize the opportunity!