Benchmark initiates coverage on Securitize with a ‘Buy’…taps it as a tokenization beneficiary

Benchmark issued a buy call on tokenization infrastructure firm Securitize (Securitize), highlighting its potential to benefit from market growth.

According to The Block on the 31st (local time), Benchmark initiated coverage of Securitize, assigning a $16 price target and a ‘Buy’ rating.

In a report, Benchmark analyst Mark Palmer characterized Securitize as a “picks and shovels” investment in the tokenization market—positioned to profit from the market’s expansion regardless of the performance of any specific asset or issuer.

He described tokenization as “one of the most significant shifts in capital market structure since the advent of electronic trading,” adding that Securitize sits at the “epicenter.”

Securitize is a platform that supports institutions in issuing, administering and trading tokenized securities. Its business model generates fees across the full lifecycle—from issuance to trading to post-trade administration.

The report said Securitize currently holds about 70% of the U.S. tokenization market. It also operates BlackRock’s tokenized fund ‘BUIDL,’ worth about $1.7 billion.

Securitize is pursuing a listing through a merger with Cantor Equity Partners II, and is expected to trade on Nasdaq under the ticker ‘SECZ.’

Momentum in market expansion is also continuing. The New York Stock Exchange (NYSE) is working with Securitize to build a platform for the issuance and trading of tokenized stocks and ETFs.

Policymakers are also taking note. U.S. Rep. Andy Barr said at a recent hearing that “securities tokenization is definitely coming.”

Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), has also encouraged tokenization-related companies to engage directly with regulators.