Benchmark launches securitization coverage with “buy” rating

Analysts at investment bank Benchmark initiated coverage of Kantar Equity Partners II on Tuesday, giving the company a “buy” rating, which is set to merge with Miami-based tokenization specialist Securitize later this year.

Analysts described securitization as an “attractive pure-play investment in tokenization” that is building the foundation for tomorrow’s capital markets through an end-to-end platform for digital representation of real-world assets such as stocks and bonds.

Benchmark analysts have a $16 price target for Securitization, which they predict will depend on the company’s ability to generate $178 million in sales by the end of next year. That includes increasing competitiveness through partnerships with blue-chip companies, the analysts added.

The benchmark ratings reflect an optimistic outlook for Securitize following a spate of crypto-related companies going public amid weak market conditions last year. reportedly stalled A similar movement is occurring among crypto-native companies like Kraken.

When securitizing signaled Last October, the company announced plans to list on the Nasdaq market through a merger with blank check firm Cantor Equity Partners II (CEPT), a deal valued at $1.25 billion. According to CEPT, on Tuesday, CEPT traded around $11. Yahoo Finance.

Benchmark analyst Mark Palmer is confident in Securitytize’s ability to achieve that goal, as “we have a good idea of ​​the company’s future revenue streams,” including recurring revenue from origination fees and service costs from companies that tokenize assets.

“I think this has huge disruptive potential as it relates to traditional finance and the way capital markets have functioned to date,” he said. decryption. “The overall concept here is really good and faster. I think it’s only a matter of time before the market starts to realize the benefits, both in terms of efficiency and settlement times.”

When Circle’s stock soared on its Wall Street debut last year, analysts said praised This moment shows the growing interest of investors in stablecoins. While dollar-pegged stablecoins could put pressure on existing payment providers, Palmer argued that the risks are higher because Securitize’s platform effectively bypasses traditional clearing infrastructure like DTCC.

Last week, securitization and the New York Stock Exchange said The two companies said they will collaborate on a tokenized securities platform rooted in 24-hour trading, highlighting their efforts to modernize financial markets in line with the SEC’s “Project Crypto” vision.

While some influential institutions are still preparing for tokenization, BlackRock CEO Larry Fink said: promoted technology From 2022, it has been officially established as a “next generation market.” A few years later, it became the world’s largest asset management company. guided $47 million strategic funding round in Securitize.

Benchmark analysts noted that Securitize’s platform already powers BlackRock’s BUIDL, the industry’s largest tokenized money market fund. The fund, valued at $2.2 billion as of Tuesday, is present in eight networks and has the majority of its shares outstanding. Ethereum and Solana.

figure technology debuted It was listed on the Nasdaq market in September last year. Although the company’s business is focused on turning home equity lines of credit (HELOCs) into tokenized assets, Palmer said Securitize is “not focused on any specific vertical or industry.” As a result, the company’s total addressable market can be defined as $300 trillion in real-world assets, he said.

“Securitize is focused on delivering the process behind tokenization, from generation to service delivery, in a way that is applicable to the apex of a wide range of industries,” he said. “That’s one of the things that sets this game apart.”