Securitize generated $19.5 million in first-quarter revenue, the tokenization platform’s best quarter ever, but losses widened to $7.9 million as the Miami-based company poured cash into expansion and preparations for its public-market debut.
The results, released Wednesday, paint a familiar picture for venture-backed crypto infrastructure firms approaching public listings: breakneck top-line growth paired with deepening operating losses. Securitize is betting that its position as a bridge between traditional finance and on-chain assets justifies the near-term cash burn, a thesis institutional partners like the New York Stock Exchange and Uniswap Labs appear to share.
Record Revenue Masks a Profitability Gap
First-quarter revenue climbed 39% from the same period a year earlier, driven almost entirely by Securitize Fund Services. Asset servicing revenue hit $8.3 million, a 201% jump that reflects the division’s rapid onboarding of institutional clients. The unit serviced 650 active funds as of March 31, positioning Securitize as a back-office provider for tokenized fund structures rather than just an issuance platform.
Tokenization revenue, by contrast, barely budged. The segment brought in $11.1 million, compared with $11 million in Q1 2025. That near-flat performance suggests the company’s original core business, helping issuers create and distribute tokenized securities, may be maturing more slowly than the fund-servicing opportunity. Or it may simply reflect lumpiness in deal flow; tokenization mandates tend to be project-based rather than recurring.
The company ended the quarter overseeing $3.4 billion in tokenized assets under management and $24.9 billion in assets under administration. Transaction volume across the platform totaled $1.9 billion during the three-month period.
Despite the headline growth, deteriorated. Net loss widened to $7.9 million, or 88 cents per diluted share, from a narrower loss in the prior-year quarter. Adjusted EBITDA collapsed to $800,000 from $4.1 million a year earlier, a roughly 80% decline that underscores how aggressively Securitize is spending.
Chief Financial Officer Francisco Flores framed the outlay as intentional. The company is adding headcount and building infrastructure to support what it expects will be larger institutional inflows once the SPAC transaction closes, while also absorbing the compliance and audit costs that come with becoming a publicly traded entity. Flores described the approach as “disciplined expense management,” though the numbers tell a story of a company prioritizing scale over near-term profit.
The SPAC Path to Public Markets
Securitize has agreed to merge with Cantor Equity Partners II (CEPT), a Nasdaq-listed special purpose acquisition company. The deal would make the tokenization platform one of the few publicly traded companies focused primarily on tokenized securities and real-world assets. Shares of CEPT rose 5% on Wednesday following the earnings release.
SPAC mergers fell out of favor after the 2021 boom turned into a wave of post-merger underperformance, but they remain one of the faster routes to public status for companies that can attract a credible sponsor. Cantor Fitzgerald’s involvement lends institutional credibility; the firm has deep relationships across fixed-income markets and has been positioning itself as a crypto-friendly prime broker.
The timing matters. The SEC recently proposed ending the traditional IPO lockout period, which would let newly public companies raise capital immediately after listing rather than waiting the customary 180 days. If that rule change takes effect before Securitize’s merger closes, the company could tap follow-on capital sooner than originally planned.
Securitize also brought on Brett Redfearn as president in April. Redfearn previously ran the SEC’s Division of Trading and Markets, giving the company a direct line to how regulators think about market structure, digital assets, and broker-dealer obligations. That expertise will be tested as Securitize navigates life as a public company operating in a sector that still lacks a comprehensive federal framework.
Institutional Partnerships Signal Confidence, Not Revenue
Beyond the numbers, Securitize highlighted a string of new partnerships during the quarter. Collaborations with the New York Stock Exchange, Uniswap Labs, and other unnamed counterparts deepen the company’s institutional reach, but the financial impact of those deals remains unclear from the earnings release.
The NYSE tie-up is particularly notable. Traditional exchanges have been circling tokenization for years, experimenting with digital-asset custody, blockchain settlement pilots, and in some cases applying for crypto trading licenses. Partnering with Securitize signals that NYSE parent Intercontinental Exchange sees tokenized securities as complementary to, rather than competitive with, its existing listings business.
Uniswap Labs, the development studio behind the largest decentralized exchange by volume, represents a different angle. Uniswap’s core protocol enables permissionless trading of Ethereum-based tokens; integrating with a regulated tokenization platform like Securitize could open a path for compliant security tokens to trade on decentralized infrastructure. Whether that actually happens, and whether regulators would allow it, are open questions, but the partnership at least plants a flag.
For context, the broader RWA sector has been gaining momentum. BlackRock’s BUIDL tokenized money-market fund crossed $500 million in assets earlier this year, and Franklin Templeton’s tokenized Treasury fund has attracted similar interest. Securitize has positioned itself as the infrastructure layer for many of these products, capturing fees on issuance, transfer, and ongoing servicing. The growth in assets under administration, from single-digit billions to nearly $25 billion, reflects that strategy.
Still, the question for public-market investors will be whether infrastructure fees scale fast enough to close the profitability gap. Securitize’s Q1 results show revenue growing at 39% while operating losses consume a meaningful share of that top line. If tokenization adoption accelerates, the company has leverage; if growth slows, the SPAC merger will debut a money-losing stock into a market that has punished unprofitable tech plays since 2022.
Reading the Numbers Closely
A few calculations add context to the headline figures. Securitize’s $19.5 million quarterly revenue implies an annualized run rate of roughly $78 million. Against a net loss of $7.9 million for the quarter, or roughly $32 million annualized, the company is burning cash at a rate that suggests it needs continued access to capital markets to fund operations and growth.
The shift in revenue mix is worth watching. Asset servicing now accounts for 43% of total revenue, up from a much smaller share when tokenization fees dominated. That diversification reduces reliance on lumpy issuance deals, but servicing fees tend to be lower-margin than tokenization fees, which capture a percentage of the transaction value at issuance. The net effect on unit economics is unclear from the public disclosures.
Comparing Securitize’s trajectory to other crypto infrastructure firms headed for public markets is difficult because few direct peers exist. Coinbase, the closest analog among publicly traded crypto companies, operates a very different business model centered on retail and institutional trading. Circle, the USDC issuer, has also explored a public listing but remains private. Securitize occupies a narrower niche, essentially competing with traditional transfer agents and fund administrators on one side and blockchain-native issuance platforms on the other.
The company’s $3.4 billion in tokenized assets under management sounds substantial until you compare it to the multi-trillion-dollar market for traditional securities servicing. Securitize is betting that on-chain securities will capture a growing share of that pie, but the timeline is uncertain. Regulatory clarity, institutional adoption curves, and blockchain infrastructure maturity all influence how quickly the market develops.
What Comes Next
Securitize’s merger with Cantor Equity Partners II is expected to close later this year, subject to shareholder approval and regulatory sign-off. Once public, the company will face quarterly earnings scrutiny and the pressure to show a path toward profitability.
In the meantime, the tokenization market continues to attract heavyweights. Traditional asset managers, exchanges, and prime brokers are all experimenting with blockchain-based issuance and settlement. Securitize’s early-mover advantage and regulatory infrastructure, including broker-dealer and transfer-agent registrations, give it a moat, but that moat is not unassailable. If larger incumbents decide to build rather than partner, the competitive landscape could shift.
For now, the Q1 results show a company executing on growth while deferring profitability. Investors who buy into the SPAC merger are betting that tokenization adoption accelerates fast enough to justify the current burn rate, and that Securitize can defend its market position as bigger players enter the space. The 5% pop in CEPT shares suggests at least some public-market participants like those odds.
