Securitize Q2: $5.3B Token Volume, Costs Up 56%

Securitize reported a 147% increase in tokenized transaction volume to $5.3 billion in the second quarter. Revenue declined 5% year over year to $14.4 million. Operating costs rose 56% to $24.1 million, and the company recorded a $21.7 million GAAP net loss and a $5.5 million adjusted EBITDA loss. Average tokenized assets under management increased 16% to $4.3 billion.

Management said the higher transaction volume, defined as investments, redemptions, dividends and cross-chain asset movements, was driven mainly by subscription and redemption activity in BlackRock’s BUIDL and BUIDL-I funds and a $250 million subscription to the Securitize Tokenized AAA CLO Fund. The company noted transaction volume measures broader platform activity than recognized revenue.

Tokenization revenue fell 12% to $7.8 million, a decline management tied primarily to fewer completed on-chain integrations. Asset-servicing revenue rose 3% to $6.6 million, an increase of about $200,000 that did not offset the tokenization shortfall. Total revenue for the quarter was $14.4 million, down from $15.1 million a year earlier.

Operating expenses increased to $24.1 million. Selling, general and administrative expenses rose by $4.7 million, reflecting higher professional fees, consulting, accounting and public-company readiness costs. Compensation and benefits increased by $2.5 million after the company added staff, including employees related to its MG Stover fund-administration acquisition. The expected credit-loss provision grew by about $1.2 million after a specific customer receivable was written off.

Those expense changes produced an operating loss of $9.7 million for the quarter, compared with an operating loss of about $200,000 in the same period a year earlier. On an adjusted EBITDA basis, Securitize moved from a $1.8 million profit in the comparable period to a $5.5 million loss. Sequentially, the first quarter showed $19.5 million of revenue and positive adjusted EBITDA of $800,000 on lower average AUM of $3.2 billion and transaction volume of $1.9 billion.

The GAAP net loss included a net $11.7 million adverse fair-value movement from non-cash remeasurements: a $29.3 million option-liability loss and a $4.3 million loss on simple agreements for future equity, partly offset by a $21.8 million derivative-liability gain. Those items are excluded from adjusted EBITDA.

Securitize held $33.6 million in cash on June 30, the day before completing its business combination with Cantor Equity Partners II. An unaudited pro forma balance sheet that treats the combination as if it had closed on June 30 reported $352.6 million of combined cash and no borrowings after convertible notes and related instruments converted into equity. The same pro forma statement showed $118.5 million of total liabilities, including earnout liabilities and interest payable.