Securitize's tokenized AUM reached $4.3B with 147% transaction growth, but revenue fell 5% and adjusted EBITDA posted a $5.5M loss, highlighting the gap between on-chain growth and sustainable revenue models.
RWA & Tokenization ·
Securitize reported record tokenized assets under management of $4.3 billion in its first quarter as a public company, with transaction volume surging 147% to $5.3 billion year over year. However, total revenue declined 5% to $14.4 million while tokenization revenue fell about 12% to $7.8 million, and the company posted an adjusted EBITDA loss of $5.5 million. Asset-servicing revenue performed better, climbing 3% to $6.6 million, as CFO Francisco Flores noted on the earnings call that AUM-based revenue remains immaterial and very little platform transaction volume is currently monetized.
The gap between on-chain growth and profitability reflects a broader structural challenge in tokenization. Most revenue still comes from one-time protocol integrations rather than recurring transaction fees, with Flores describing transaction monetization as a medium- to long-term opportunity not yet captured by the current business model. Management's full-year guidance of $70 million to $80 million falls well short of the $110 million projected in pre-listing materials, requiring $18 to $23 million quarterly for the remainder of 2024.
Industry participants attribute the mismatch to how tokenization has been delivered: through customized engagements, bespoke integrations, and jurisdiction-specific setups that function as one-time implementation projects. Edwin Mata, CEO of tokenization platform Brickken, argued that recurring revenue opportunity lies beyond issuance—in managing instruments for years through permissions, compliance, reporting, and corporate actions—rather than in the upfront fees tied to getting assets onto blockchains.