Securitize, a platform for issuing and servicing tokenized securities, reported that aggregate transaction volume jumped 147% in the 2nd quarter, to US$ 5.3 billion. Year over year, revenue fell 5%, to US$ 14.4 million, and the company reported a net loss of US$ 21.7 million.
Average tokenized assets under management reached US$ 4.3 billion, up 16% from a year earlier. According to management, the volume increase was driven mainly by subscriptions and redemptions in BlackRock's BUIDL and BUIDL-I funds, as well as a US$ 250 million subscription in the Securitize Tokenized AAA CLO Fund.
Tokenization revenue fell 12%, to US$ 7.8 million, while asset services revenue rose 3%, to US$ 6.6 million. The company attributed the decline in tokenization revenue to the lower number of on-chain integrations completed in the period.
Costs and results
Operating expenses grew 56% year over year, to US$ 24.1 million, with an increase of US$ 4.7 million in general and administrative expenses and US$ 2.5 million in compensation. Operating loss went from approximately US$ 200 thousand to US$ 9.7 million. Adjusted EBITDA, a non-GAAP measure defined by the company, was negative at US$ 5.5 million, versus a profit of US$ 1.8 million.
The net loss included a net adverse effect of US$ 11.7 million from fair value movements, such as losses of US$ 29.3 million on option liabilities and US$ 4.3 million on simple agreements for future equity, partially offset by a gain of US$ 21.8 million on derivative liabilities.
On June 30, Securitize had US$ 33.6 million in cash, one day before concluding its combination with Cantor Equity Partners II. In a pro forma balance sheet that treats the transaction as if it had closed on June 30, combined cash would be US$ 352.6 million, with no debt, although there would still be US$ 118.5 million in total liabilities, including earnouts and interest payable.
The next challenge is to convert increased platform usage into integration and asset services revenue without letting the public company cost structure outpace sales.
