Securitize Corp. 2026 Q2 Earnings Call

Good morning, and thank you all for joining Securitize's Second Quarter 2026 Earnings Call. For our prepared remarks today, I am joined by our Chairman and Chief Executive Officer, Carlos Domingo, our Chief Financial Officer, Francisco Flores, and our President, Brett Redfearn, who will be joining us for the Q&A portion of the call. I'd like to remind you that today's presentation, which is available for download on our investor relations website, investors.securitize.io, may contain forward-looking statements which are based on management's current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SECZ filings. With that, I'll turn the call over to Carlos.

Good morning, everyone, and thank you for joining us on our first earnings call as a public company. Close to nine years ago, when I started the company with my co-founders, this moment was a very distant dream. Today, it has become a reality, and I'm incredibly excited to be here. Before I discuss the quarter, I want to thank the Securitize team, our customers and partners and investors who believed in Securitize and the opportunity from the start. Now, let me tell you why this moment matters for more than just at Securitize. For years, the debate about tokenization was whether it was real. Will financial assets move onto blockchains? Will this remain a crypto experiment at the edge of the financial system? That debate is largely over. The question is no longer whether capital markets move on-chain.

It's how fast and which companies will build the regulatory infrastructure that enables that transition. We believe this represents one of the largest shifts in financial market infrastructure in a generation, and we intend to be the company that leads that shift. In an emerging industry like ours, and particularly as a newly public company, numbers alone do not tell the full story. What matters is what those numbers tell us about our progress towards a much larger goal, the adoption of tokenization across global capital markets. With that in mind, I want to begin somewhere different than where most earnings calls typically begin. First, I want to walk you through who we are and what we do. Then I'll discuss the size of the opportunity ahead of us and our strategy to win. From there, we'll move into our second quarter business highlights.

Given how large and diversified this industry is, we will break those highlights across the key areas of the market where we're focusing our efforts. Finally, I'll provide an update on the regulatory environment before handing the presentation over to our CFO to walk through the financials. Let's start with our stated mission: tokenize the world. Capital markets today still run on outdated ledger technology. A single transaction can require updates across multiple siloed ledgers, all of which need to be reconciled and coordinated through a web of intermediaries before that transaction can successfully settle. Our thesis is very simple. The underlying plumbing of global finance comes from the '70s. Archaic ledgers, manual settlement cycles, and the constant need to reconcile silo systems was built for a world of couriers and physical document transmission. That world has disappeared, but the infrastructure remains.

It persists not because it's efficient, but because it's deeply entrenched and because many institutions have been incentivized to equate that entrenchment with quality. For years, skeptics argued that blockchain was a technology looking for a problem. They insisted that major incumbents will never adopt it, and that regulation will stifle the industry from growing. These claims were made with absolute certainty, but the market has already changed dramatically, and they're no longer true. Our technology and regulatory stack is modernizing how capital is raised, managed, and traded. That means broader access, always-on markets, significant operational efficiencies, lower structural costs, fewer intermediaries, and more transparent ownership. Securitize provides the most comprehensive regulatory stack for assets issuers looking to move their securities on-chain.

It begins with our regulated transfer agent, a first in the industry registered back in July 2019, way before transfer agents were sexy and crypto companies were purchasing them or registering new ones. We complement this with the largest digital fund administration business in the industry. We have further expanded our stack through our investment advisor, which became a fully registered investment advisor in early Q3. That gave us the ability to manage or co-manage tokenized assets alongside our customers. Together, these capabilities allow us to provide an end-to-end service to asset managers and issuers for their tokenized assets. But issuing assets on a blockchain is only one side of the story. Tokenized assets also need to reach investors. This is why Securitize has operated a broker-dealer and alternative trading system since late 2020.

These capabilities support both primary distribution and secondary market trading of our customers' tokenized assets, giving investors the ability to access them with a strong regulatory framework and the protections they expect from traditional markets. But tokenizing an asset and putting it on a blockchain is only the beginning. To become truly useful for investors, tokenized assets need to be integrated throughout the on-chain financial ecosystem. Over the years, Securitize has built the most comprehensive ecosystem of integrations in the tokenization industry. We've integrated with 23 different blockchains, including all the major ecosystems. We work with many of the largest qualified custodians, as well as the leading oracles providers that bring asset pricing on-chain. We've also built integrations across major DeFi protocols and stablecoins with support from leading prime brokers and market makers. All of that is surrounded by an interoperability security and compliance layer designed for Web3 markets.

And this is how we win. Since 2018, we have been building the largest and most comprehensive technology platform in the tokenization industry, a platform that is supported by the broadest and most compliant regulatory stack. That combination has helped us attract the largest institutions in the world. Companies like Apollo, BNY, BlackRock, or Hamilton Lane have chosen to issue their assets with our technology and put their trust with us. That creates a flywheel. Having high-quality assets drives investor adoption of our platform. Greater investor adoption creates additional demand from issuers that, in turn, brings more assets onto the platform. We are very proud of our work today, but the real opportunity lies ahead of us. Let us now focus on how we are tackling this accelerating market. Tokenization is growing faster than any other part of the digital asset ecosystem, but the industry is still at its infancy.

Today, there are roughly $38 billion of assets tokenized on public blockchains, excluding stablecoins. However, most analysts predict that that figure will grow into a multi-trillion dollar market over the next five years, with that growth distributed across multiple asset classes. Let us talk about that and where we see that growth happening. As we have stated, our long-term ambition is to tokenize the world, which means every single financial asset. But not every asset class is equally ready today to benefit from tokenization. Some categories, like treasuries, are already growing at a meaningful scale. We have established a leadership position there that I will expand on shortly. Other categories like equities, bonds, and credit are early in the adoption curve but are ready to scale. Some others, like alternative assets or real estate, we believe will take longer.

The rate of adoption, the size of the addressable market, and the opportunity we see over the next five years informs our strategy and focus. Today, much of the tokenization economy revolves around the $2 trillion crypto market. Think about the participants in that market. These are retail and institutional users who are already familiar with managing wallets, signing transactions, using stablecoins, and other crypto-native tools. That makes it easier for them to benefit from tokenized assets today. But as we mentioned, the much larger opportunity is the shift to traditional financial institutions and investors. That expands the addressable market to 100x, from $2 trillion to $400 trillion. So while we continue to scale our business with crypto-native markets, we are also preparing for much broader adoption of tokenized assets by traditional financial participants. From a monetization perspective, our strategy is also evolving.

Today, we primarily monetize the creation and servicing of assets through our transfer agent and fund administration business. Over time, we see an opportunity to move upstream and capture more value from the growing transaction activity these assets generate. That includes trading and on- and off-ramping as examples. We have started to do a bit of that, but there is a larger opportunity ahead. We also see a large opportunity to become a more active participant in the on-chain economy where tokenized assets can be lent, traded, and used as collateral. As we mentioned, tokenization creates new opportunities depending on each asset class. In the next section, we will walk you through the three areas we are most focused today: treasuries, yield-bearing assets, and public equities. I will explain why we believe each category matters, how we are approaching it, and the progress we have made in each area.

Before we dive in each area, I want to quickly highlight how productive the second quarter and overall this year has been so far for Securitize. We expanded major institutional partnerships, continued building the utility of our assets across DeFi and on-chain markets, and added important regulatory and market infrastructure capabilities. These are all important building blocks for the business, and we will walk through each of them in more detail over the next several slides. First, I want to emphasize that Securitize continues to be the largest tokenization platform in the industry. We were the only platform with more than 4 billion assets at the end of Q2, and in early Q3, we surpassed 5 billion, becoming the first tokenization platform to reach that milestone as well. Currently, no other platform has surpassed the $4 billion AUM market except us.

We have mentioned the diversity of the products we strive to provide. We are also the only platform with more than seven individual assets that exceeded $100 million in AUM, products that span multiple asset classes. We are the leader in permissioned tokenized treasuries. We have the largest tokenized equity in the industry, SECZ, our own New York Stock Exchange-listed stock. More on that later. We have the largest tokenized institutional fund, BCAP, at close to $1 billion of AUM. We also have one of the largest tokenized credit platforms, with more than $450 million in AUM. We are not only the largest platform, we are also winning in many categories. As you can see in this chart from the gray line, crypto market cap peaked in late Q3 2025 and has since then continued declining each quarter to be now at around 50% of the size that it was back then.