Summary

  • Securitize Corp. jumped more than 20% after agreeing to buy River One. I think the deal matters for a different reason than the $6 Trillion market most analysts focus on.
  • SECZ's Q3 showed tokenized assets up 39% but revenue up only 13%: Securitize gets paid mostly when products launch, and very little for the assets that stay on its platform.
  • With River One, Securitize would earn origination fees and a share of the lending spread, funded by ~$320 Billion of stablecoins that cannot pay interest by law.
  • A Democratic Congress cannot change the rules Securitize already operates under, and a stricter SEC could even make its licenses more valuable.
  • I rate SECZ stock a Buy, but only as a small, speculative bet: BUIDL outflows and a December lockup on ~73% of the shares are the main near-term risks.

Securitize Corp. (SECZ) shares recently jumped more than 20% in one single session, after the company reported its Q3 results and announced a deal to buy River One, a lending platform

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