Deal Insights
In an exciting development, asset tokenization leader, Securitize, has announced its intent to purchase Onramp Invest, a pioneering digital asset wealth platform. The purpose behind this strategic acquisition is to bolster its services for registered investment advisors (RIAs). Although the finer details of this transaction are yet to be unveiled, it’s anticipated that the deal will be finalized soon.
Integration Plans
Post-acquisition, Onramp will not function independently but will serve as a subsidiary to Securitize. There’s a strategic plan in place to seamlessly merge Securitize’s products with the existing services offered by Onramp.
The Broader Vision
The primary goal behind this union is to empower RIAs with the capability to present their clientele with tokenized investment options. These aren’t limited to just any investments; the focus is on alternative asset categories like private equity, real estate, private credit, and secondaries. Carlos Domingo, the CEO of Securitize, commented, “Given Onramp’s existing model of granting RIAs easy digital asset access, it seems like a logical progression to enhance their offering with tokenized alternative assets. This will further enrich their portfolios.”
Market Implications
This recent merger is more than just a business deal. It stands as a testament to the gradually merging paths of traditional finance markets and digital assets. Furthermore, it could signify a potential trend of consolidation among startups in these realms.
Elaborating on the current market situation, Carlos Domingo expressed to CoinDesk, “Given the plummet in tech valuations and the reduced venture capital funding, firms that are well-positioned financially, like Securitize, have a newfound opportunity. It’s the chance to fast-track the digital transformation of finance and to spearhead this revolution.”
In conclusion, as the lines between traditional and digital finance blur, consolidations like these hint at a promising future for digital finance.
