Securitize Capital LLC, the asset management branch of the tokenization platform Securitize, has upgraded its regulatory status to become a fully registered investment adviser, according to an announcement made on Monday. Previously operating as an exempt reporting adviser, a designation for smaller private fund managers with lighter regulation, Securitize Capital now appears on the SEC’s official register under file number 801-136838.

This development means Securitize now holds three SEC registrations across its U.S. entities, including its broker-dealer managing an alternative trading system and a transfer agent. The new adviser registration imposes stricter requirements such as examination, recordkeeping, and disclosure obligations pursuant to the Investment Advisers Act of 1940.

Context from SEC Warnings and Market Growth

The move follows SEC Commissioner Hester Peirce’s recent caution that managing crypto vaults and onchain lending might trigger investment adviser duties. Carlos Domingo, Securitize’s co-founder and CEO, emphasized the importance of partnering with firms that grasp both the opportunities presented by tokenization and the responsibilities that come from operating in regulated markets. He added that Securitize Capital’s new registration enhances their ability to assist institutions in shaping investment strategies designed for decentralized finance.

Earlier this year, Securitize collaborated with Euler to launch a permissioned vault allowing tokenized funds to serve as decentralized finance (DeFi) collateral without violating transfer restrictions attached to regulated assets. With the adviser license, Securitize Capital can potentially manage these complex strategies on behalf of clients, expanding beyond just providing protocols and infrastructure.

Meanwhile, data from DeFiLlama shows approximately $8.1 billion is currently locked across 59 risk-curator platforms, with leading names like Steakhouse Financial, Sentora, and Gauntlet holding significant shares. Interestingly, none of these platforms appear on the SEC’s adviser roster.

The tokenization sector is nearing record scale. RWA.xyz reports that the total distributed value of tokenized real-world assets, excluding stablecoins, has reached about $36.9 billion, reflecting a 4% increase over the past month. Securitize issues BlackRock’s BUIDL fund, which represents $2.6 billion within that figure, and is actively involved in developing the New York Stock Exchange’s tokenized stock platform.

SECZ, a tokenized security that debuted on the NYSE by tokenizing $295 million of its own stock on July 2, recently traded near $6.94, marking a decline of over 7% on the day and sitting more than 50% below its all-time high near $14.

This information is provided for informational purposes only and should not be considered financial advice.