- Summary:
- The acquisition has happened at a time when there is a slowdown in mergers and acquisitions, signaling growing appetite for digital assets.
To further its mission of providing tokenized alternative assets to a wider range of investors and businesses, Securitize has acquired digital asset wealth platform, Onramp Invest. With this purchase, Registered Investment Advisors (RIAs) will be able to provide their clients with instant access to investments in the best-performing alternative asset classes. Although the terms of the acquisition were not made public, the deal is expected to be finalised over the next few days.
Making sense of Onramp as part of Securitize
This purchase comes after Securitize and Onramp announced in March that they would be working together to provide their RIA members with access to private equity feeder funds offered by Securitize alongside investment giants KKR and Hamilton Lane. Equally important is the fact that the acquisition, coming in an environment with reduced M&A activities, also signifies how closely traditional markets and digital assets are becoming intertwined. Supporters of tokenisation argue that its benefits accrue to investors because of the increased liquidity and transparency provided by public blockchains.
By merging with Onramp, Securitize will be able to provide its tokens to clients who already support financial advisors providing cryptocurrency services to their clients. Onramp’s platform is used by a network of RIAs in the United States that manage over $40 billion in assets under management (AUM). In addition, it has brought onboard prominent digital asset index providers and asset managers like WisdomTree, CoinDesk, Global X, Valkyrie Invest, and others.
Securitize specialises in packaging tokenized investments in alternative asset classes like private equity, private credit, secondaries, and real estate are the goal of Securitize. Specifically, the company aims to facilitate the provision of such investments by registered investment advisors.
By combining Securitize with Onramp, registered investment advisors will give their customers access to the vast majority of the wealth created in the private market’s alternative assets. Securitize plans to keep Onramp running as a subsidiary and eventually include Securitize products into Onramp’s current portfolio.