Securitize, a digital asset/tokenization enabler, has launched a new subsidiary, Securitize Credit, which is introducing a new product called “Earn.”
The platform is designed “to provide Securitize users an opportunity to earn sustainable, high-quality on-chain yields through digital assets.”
Securitize Earn enables qualified crypto lenders “access to sustainably earned interest in a simplified, reliable marketplace, offering a distinct alternative to the volatile landscape of DeFi.”
Eligible lenders can lend select crypto and stablecoins “to generate rewards at rates set by Securitize Credit.”
Securitize Credit is able to offer these rewards “because it invests in and makes over-collateralized loans secured against high quality private assets including digital asset securities issued and managed by Wall Street’s largest and most successful asset managers.”
This asset class has over 20 years of data “indicating private assets consistently outperform public assets and have lower volatility.”
This innovative approach ensures “not only that Securitize Credit will be able to generate returns to cover the interest rewards due to lenders, but also that Securitize Credit will be able to pay its Earn users higher rates more sustainably, predictably and transparently.”
Securitize Co-Founder and CEO Carlos Domingo said:
“Traditional on-chain collateral and credit opportunities often lack quality, while DeFi remains inaccessible, especially for institutional investors. On-chain yields, although promising, are hindered by low risk-adjusted returns and restricted access to high-quality income-generating digital securities. Securitize Credit addresses these limitations by making over-collateralized loans underpinned by the highest-quality assets issued and managed by Wall Street’s top private asset managers.”
Unlike existing models where on-chain yields “are driven by an array of factors including speculative trading and excessive leverage, Securitize Credit’s approach focuses on over-collateralized loans and repo transactions with highest-quality assets, providing a more reliable and consistent source of income.”
Eligible lenders in applicable jurisdictions who “have completed KYC and already have a Securitize ID can now begin earning sustainable interest by lending BTC, WBTC, and other popular stablecoins to Securitize Credit at www.securitizecredit.io.”
Securitize Credit is a member of “the Securitize group which also includes Securitize, LLC, a top 10 FINRA-regulated Stock Transfer Agent, and Securitize Markets, LLC, a registered Broker-Dealer.”
With over $100 million raised since 2017 from investors “including Morgan Stanley, Blockchain Capital, and Coinbase, Securitize boasts a team of seasoned professionals with expertise in traditional finance, crypto lending, trading, investment, regulation, and blockchain development.”
Securitize is expanding investor access “to the most exclusive private market assets, leveraging tokenization to broaden the availability of previously inaccessible investments.”
Securitize says that it is “driving the compliant digitalization of financial assets through next generation blockchain technology.”