Securitize CEO Carlos Domingo on Tokenization’s Next Growth Phase

**SPEAKER_1** (0:00)
Carlos Domingo, CEO of Securitize, joining us once again after being on with us in July when the company went public, so it's great to have you back. You've had your first earnings since going public, and there's a lot of big news here with the big companies tokenizing. I want to hear what you think about the latest earnings report.

**Carlos Domingo** (0:22)
So yes, it was our first earnings report for a publicly traded company.
I think that we're very excited about it, that we finally went public in July.
We basically review things that we have been announcing during Q2 particularly the progress that we've made in the tokenized equity space where we secure partnerships with the first and the third largest transfer agent, Computershare and Continental. We also discuss about how we tokenize our own equity at launch, so we can actually prove to the market that you can actually trade in the US. We, our AUM grew well. We are, you know, we reported 4.3 billion dollars, like a billion dollar increase in AUM at the end of Q2, and shortly after in Q3, we hit the $5 billion mark. So we continue to be in the leading platform in this space. So we're pretty excited about what the future is ahead of us.

**SPEAKER_1** (1:11)
Yeah, I mean, the tokenization platform, you have a record average tokenized assets under management and you've partnered with many of the top tier asset managers, including Apollo and BlackRock and BNY and KKR and FANAC.
Taking these big firms and real world assets on chain and your transaction volume is up 150 percent. Tell me some of the things that happen when you do that.

**Carlos Domingo** (1:37)
So yes, we've been working with large asset managers. This is something that is a very complex process, as you can imagine, on boarding with a company like BlackRock or others is something that takes some time. But we're very proud of the infrastructure that we've built.
All the regulatory perimeter, the licenses we have, the technology and the compliance that allow us to basically work with these very large asset managers. In fact, one of the things we announced was also the second tokenized fund with BlackRock, the BlackRock Daily Reinvestment Reserve Fund, which is designed for being backing for stable coins because it's genius compliance. We're pretty excited about it.

**SPEAKER_1** (2:14)
When I think about the big picture going forward here, you talked about the real world now coming on chain and this is what you anticipate. Tell me about the continued expansion plans you have going forward.

**Carlos Domingo** (2:29)
The industry is still at its infancy.
If you think about the amount of assets that have been tokenized on public chains out there, there's around $38 billion. As I mentioned, we have around $5 billion now, which we're the largest platform. But still, this is a very, very small amount compared to the potential of the tens of trillions of dollars that are ahead of us. So I think that most of the growth of the excitement of the industry is still ahead of us, and we're very excited to be here contributing to that.

**SPEAKER_1** (2:58)
You talk about also, this is really changing the way everybody operates. In fact, how companies raise capital, how they manage investors, how so? What's different now?

**Carlos Domingo** (3:11)
So listen, we're moving into a native digital world, right? Like the young people operate with wallets, they want self-custody, they want to be able to access products by themselves without intermediaries. They're very familiar already with crypto, so this is kind of like the equivalent, but for regulated assets. So I think that we're in the middle of probably one of the largest transformation for capital markets that we've seen in recent history.
But of course, like any other new technology, it's going to take a while until it has broad adoption and it still has friction to use it unless you're a native crypto person. And that's precisely what we're focusing on, on how we can continue offering these tokenized assets in a way that are easy to consume by normal users.

**SPEAKER_1** (3:51)
And of course, we're waiting for more and more Main Street adoption and the prospects for that. I do want to hear your thoughts on that, but I do want to get immediately to the Clarity Act before we run out of time. Where do you think we are on that, as Congress is on a break?

**Carlos Domingo** (4:09)
Well, obviously, it didn't get approved. It's been postponed apparently to September. I just want to say something. The Clarity Act is going to be great for the industry, specifically for the crypto industry. In our case, we don't need clarity to operate with what we do, because the Clarity Act precisely is about what thinks our securities, what thinks our commodity, and how digital assets get regulated. What we do is all securities, and therefore, it's very clear.