Benchmark initiates coverage on Securitize, calls it a 'picks and shovels' play for tokenization

Benchmark initiated coverage on Securitize on Tuesday, ahead of the fintech's planned public debut via a merger with Cantor Equity Partners II, assigning a Buy rating and a $16 price target.

Analyst Mark Palmer likened the firm to a "picks and shovels" play on tokenization, arguing that it stands to benefit as more real-world assets move onchain, regardless of which products or issuers succeed.

The report touted the tokenization sector as one of the most "profound shifts" in capital markets since the introduction of electronic trading, with Securitize at the "epicenter" of that shift.

Securitize operates as a platform that helps institutions issue, manage, and trade tokenized securities. That allows it to capture fees throughout the lifetime of tokenized assets, much like a traditional exchange or clearinghouse.

The company already accounts for roughly 70% of the U.S. tokenization market, according to the report. It has also worked with major asset managers including BlackRock, whose BUIDL fund is the largest tokenized fund, with about $1.7 billion in Treasuries, overnight repos, and cash.

Following the merger, the combined company is expected to trade on Nasdaq under the ticker SECZ.

Tokenization momentum

The bullish call matches the growing sentiment surrounding tokenization, including among traditional finance firms that have been slower to embrace blockchain.

Estimates are broad, but analysts project that upwards of $30 trillion could end up flowing through the sector over the next decade.

The New York Stock Exchange recently tapped Securitize to help build a platform for issuing and trading tokenized stocks and ETFs, part of a broader push toward 24/7 markets and blockchain-based settlement.

Lawmakers are also taking notice. During a recent House Financial Services Committee hearing, Rep. Andy Barr said "no doubt tokenization of securities is coming," as regulators weigh balancing innovation with investor protections.

SEC Commissioner Hester Peirce recently struck a similarly open tone, encouraging firms exploring tokenization to “come in and talk to us” as the agency works through how to accommodate new products.

Proponents say tokenization could streamline settlement, expand market access, and improve capital efficiency.