Securitize reported $19.5 million in first-quarter revenue, up 39% from a year earlier and the highest quarterly total in the company’s history. The results come as the tokenization platform moves toward a proposed public listing through its SPAC merger with Cantor Equity Partners II, or CEPT.
Asset servicing was the main growth driver. Revenue from that segment jumped 201% to $8.3 million, helped by the continued expansion of Securitize Fund Services. As of March 31, the unit was servicing 650 active funds. Tokenization revenue came in at $11.1 million, compared with $11 million in the same quarter last year.
Tokenized asset base and administration figures increased
By the end of the quarter, the company had $3.4 billion in tokenized assets under management, $24.9 billion in assets under administration, and $1.9 billion in aggregated transaction volume. Those figures point to continued activity in tokenized securities and real-world assets as institutional participation remains in place.
The stronger top line did not lead to net profitability. Securitize posted a net loss of $7.9 million, or 88 cents per diluted share, as it increased spending on expansion and on the work required to become a public company. On an adjusted Ebitda basis, the company stayed profitable, though that figure fell to $800,000 from $4.1 million a year earlier.
Company says spending reflects expansion and listing preparations
Chief Financial Officer Francisco Flores said Securitize kept investing in headcount and infrastructure to support long-term growth and the transition to the public market, while maintaining disciplined expense management. He also said the company ended the quarter with a solid liquidity position and operating cash flow that was roughly breakeven before working-capital movements and public-company related costs.
Securitize has agreed to merge with Nasdaq-listed special purpose acquisition company Cantor Equity Partners II. If completed, the deal would place it among the few public companies focused mainly on tokenized securities and real-world assets. Shares of CEPT rose 5% on Wednesday.