Tokenization company Securitize has unveiled a new lending arm called Securitize Credit, aiming to expand its reach in the growing tokenized assets market.
The startup, which has the backing of Morgan Stanley, is well-known for tokenizing major investment funds such as those managed by KKR and Hamilton Lane.
Over the years, Securitize has built a broad portfolio of services related to asset tokenization, including operating a FINRA-registered secondary market for trading digital securities.
The newly created subsidiary will manage the Securitize Earn program, a platform that allows cryptocurrency holders to lend the company stablecoins as well as tokens like Bitcoin (BTC) and Ethereum (ETH).
Funds collected from lenders will be channeled into over-collateralized loans issued to borrowers who pledge private assets—including digital securities—as collateral.
In some cases, borrowers may engage in repurchase agreements (repos) instead of standard loans. This means they sell their private assets to Securitize Credit with a contractual agreement to buy them back within a set period—often one to three months—at a slightly higher price.
The loans provided will be paid out in USDC stablecoins. However, questions remain about how Securitize will convert the cryptocurrencies it receives through the rewards program into USDC while keeping risk levels low.
When approached for clarification on this process, the company had not responded before the story’s publication.
In a statement, Carlos Domingo, Co-Founder and CEO of Securitize, said:
“Traditional on-chain collateral and credit opportunities often lack high-quality assets, and DeFi still remains largely inaccessible for institutional investors. While on-chain yields show potential, they are often held back by low risk-adjusted returns and limited access to strong, income-generating digital securities. Securitize Credit aims to fix this by offering over-collateralized loans backed by premium assets from leading Wall Street private asset managers.”
Legal Structure and Global Operations
The Earn program has already gone live, while the lending service is expected to officially launch before the end of June.
While Securitize typically runs its regulated operations from the United States, it also has international branches, including one in Japan.
In this case, the SC Credit Rewards subsidiary running the rewards program is incorporated in the British Virgin Islands.
This structure allows the company to navigate U.S. legal restrictions, as the Earn program is not available in the United States or in certain other jurisdictions such as Canada, Italy, and Japan.
The lending operation that will use tokenized real-world assets (RWA) as collateral will be conducted under a separate entity—Securitize Credit.
Expanding Influence in Wealth Management
Securitize has also been broadening its presence in the wealth management sector. Last year, it acquired OnRamp Invest, a fintech platform that provides tools for financial advisors to offer cryptocurrency services to their clients. At the time of the acquisition, OnRamp Invest served more than 300,000 accredited investors.
Today, Securitize boasts a growing investor base of over 500,000 individuals, positioning itself as a key player in the integration of tokenized assets, lending services, and regulated investment opportunities.
Follow Gen Z New WhatsApp Channel
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
