Digital asset firm Securitize has acquired wealth management platform Onramp Invest, according to a company statement.
The terms of the acquisition were not disclosed.
Onramp is described as a “turn-key digital asset management platform that seamlessly connects traditional and digital asset financial infrastructures.”
Securitize is one of the best-known names in the tokenization sector, allowing alternative assets as well as more traditional assets to benefit from blockchain technology.
Securitize explains that the acquisition will allow Registered Investment Advisors (RIAs) to offer clients alternative assets, including private equity, private credit, secondaries, real estate, and more. This should help Securitize broaden its exposure to more investors. Securitize already lists multiple digital assets for trading. Securitize touts the ability to provide investors with institutional assets at lower minimums and fees.
The company shares that Onramp’s platform currently serves a community of RIAs across the U.S., representing over $40 billion in cumulative AUM, as well as firms like WisdomTree, CoinDesk, Global X, Valkyrie Invest, and others.
Securitize CEO Carlos Domingo said the acquisition of Onramp is a big step forward in expanding investors’ access to private capital markets.
“Onramp already offered RIAs easy access to digital assets, so it is a very natural extension to offer them tokenized alternative assets to complement their portfolios. Most wealth is generated in private market alternative assets and bringing Securitize and Onramp together enables registered investment advisors to give their clients access to that wealth generation.”
Eric Ervin, founder and CEO of Onramp Invest, said they launched the company to break down barriers for advisors to access more investment opportunities. Ervin said that more advisors are choosing alternatives due to the benefits. Securitize can provide access to these assets with less friction and lower cost, along with the option for liquidity.
“Tokenization will be a major player in the investment space, and it’s imperative that all financial professionals are able to embrace this change.”
The acquisition follows a partnership between Securitize and Onramp that was announced in March through which its RIA members could access private equity feeder funds Securitize offers with investment firms KKR and Hamilton Lane, and the news last month that Securitize had begun issuing tokenized securities in Europe.
Onramp is expected to continue operating as a subsidiary of Securitize and to integrate Securitize products into its existing offering over time.