Securitize Corp.

Hello everyone. Thank you for joining us and welcome to Securitize Second Quarter 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Sam Ross, Head of Investor Relations. Sam, please go ahead.

Thank you, Chase. Good morning, and thank you all for joining Securitize's second quarter 2026 earnings call. For our prepared remarks today, I am joined by our chairman and chief executive officer, Carlos Domingo, our chief financial officer, Francisco Flores, and our president, Brett Redfearn, who will be joining us for the Q&A portion of the call. I'd like to remind you that today's presentation, which is available for download on our investor relations website, investors.securitize.io may contain forward-looking statements which are based on management's current expectations and are subject to risks, uncertainties, and changes in circumstances. Actual results may differ materially from these statements due to a variety of factors, including those described in our earnings materials as well as in our SEC filings. And with that, I'll turn the call over to Carlos.

Good morning, everyone, and thank you for joining us on our first earnings call as a public company. Close to nine years ago, when I started the company with my co-founders, this moment was a very distant dream. Today, it has become a reality, and I'm incredibly excited to be here. Before I discuss the quarter, I want to thank the Securitize team, our customers and partners and investors who believe in Securitize and the opportunity from the start. Now, let me tell you why this moment matters for more than just Securitize. For years, the debate about tokenization was whether it was real. Will financial assets move on to blockchains? Will this remain a crypto experiment at the edge or the financial system? That debate is largely over. The question is no longer whether capital markets move on chain. It's how fast and which companies will build a regulated infrastructure that enables that transition. We believe this represents one of the largest shifts in financial market infrastructure in a generation. And we intend to be the company that leads that shift. In an emerging industry like ours, and particularly as a newly public company, numbers alone do not tell the full story. What matters is what those numbers tell us about our progress towards a much larger goal, the adoption of tokenization across global capital markets. With that in mind, I want to begin somewhere different than where most earning calls typically begin. First, I want to walk you through who we are and what we do. Then I'll discuss the size of the opportunity ahead of us and our strategy to win. From there, we'll move into our second quarter business highlights. Given how large and diversified this industry is, we will break those highlights across the key areas of the market where we're focusing our efforts. Finally, I'll provide an update on the regulatory environment before handling the presentation over to our CFO to walk through the financials. So let's start with our stated mission, tokenize the world. Capital markets today still run on outdated ledger technologies. A single transaction can require updates across multiple silo ledgers, all of which need to be reconciled and coordinated through a web of intermediaries before that transaction can successfully settle. Our thesis is very simple. The underlying plumbing of global finance comes from the 70s. Archaic ledgers, manual settlement cycles, and the constant need to reconcile silo systems was built for a world of careers and physical document transmission. That world has disappeared, but the infrastructure remains. It persists not because it's efficient, but because it's deeply entrenched and because many institutions have been incentivized to equate that entrenchment with quality. For years, skeptics argued that blockchain was a technology looking for a problem. They insisted that major incumbents will never adopt it and that regulation will stifle the industry from growing. These claims were made with absolute certainty, but the market has already changed dramatically and they're no longer true. Our technology and regulatory stack is modernizing how capital is raised, managed, and traded. That means broader access, always-on markets, significant operational efficiencies, lower structural costs, fewer intermediaries, and more transparent ownership. Securitize provides the most comprehensive regulatory stack for asset issuers looking to move their securities on-chain. It begins with our regulated transfer agent, a first in the industry registered back in July 2019 way before transfer agents were sexy and crypto companies were purchasing them or registering new ones. We complement this with the largest digital fund administration business in the industry. We have further expanded our stack through our investment advisor, which became a fully registered investment advisor in early Q3. That gave us the ability to manage or co-manage tokenized assets alongside our customers. Together, these capabilities allow us to provide an end-to-end service to asset managers and issuers for their tokenized assets. But issuing assets on a blockchain is only one side of the story. Tokenized assets also need to reach investors. This is why Securitize has operated a broker-dealer and alternative trading system since late 2020. These capabilities support both primary distribution and secondary market trading of our customers' tokenized assets, giving investors the ability to access them with a strong regulatory framework and the protections they expect from traditional markets. But tokenizing an asset and putting it on a blockchain is only the beginning. To become truly useful for investors, tokenized assets need to be integrated throughout the on-chain financial ecosystem. Over the years, Securitize has built the most comprehensive ecosystem of integrations in the tokenization industry. We've integrated with 23 different blockchains, including all the major ecosystems. We work with many of the largest qualified custodians, as well as the leading oracles providers that bring asset pricing on-chain. We've also built integrations across major DeFi protocols and stablecoins with support from leading prime brokers and market makers. and all of that is surrounded by an interoperability security and compliance layer designed for Web3 markets. And this is how we win. Since 2018, we have been building the largest and most comprehensive technology platform in the tokenization industry, a platform that is supported by the broadest and most compliant regulatory stack. That combination has helped us attract the largest institutions in the world. Companies like Apollo, BNY, BlackRock or Hamilton Lane have chosen to issue their assets with our technology. and put their trust with us. That creates a flywheel. Having high quality assets drives investor adoption of our platform. Really, investor adoption creates additional demand from issuers that in turn brings more assets onto the platform. We're very proud of our work today, but the real opportunity lies ahead of us. Let's now focus on how we're tanking this accelerated market. Tokenization is growing faster than any other part of the digital asset ecosystem. But the industry is still at its infancy. Today, there are roughly $38 billion of assets tokenized on public blockchains, excluding stablecoins. However, most analysts predict that that figure will grow into a multi-trillion dollar market over the next five years, with that growth distributed across multiple asset classes. So let's talk about that and where we see that growth happening. As we stated, our long-term ambition is to tokenize the world, which means every single financial asset. but not every asset class is equally ready today to benefit from tokenization. Some categories like treasuries are already growing at a meaningful scale. We have established a leadership position there that I will expand on shortly. Other categories like equities, bonds, and credit are early in the adoption curve but are ready to scale. Some others like alternative assets or real estate we believe will take longer. The rate of adoption, the size of the addressable market, and the opportunity we see over the next five years informs our strategy and focus. Today, much of the tokenization economy revolves around the $2 trillion crypto market. Think about the participants in that market. These are retail and institutional users who are already familiar with managing wallets, signing transactions, using stablecoins, and other crypto native tools. That makes it easier for them to benefit from tokenized assets today. But as we mentioned, the much larger opportunity is the shift to traditional financial institutions and investors. That expands the addressable market 200x from $2 trillion to $400 trillion. So while we continue to scale our business with crypto native markets, we're also preparing for much broader adoption of tokenized assets by traditional financial participants. From a monetization perspective, our strategy is also evolving. Today, we primarily monetize the creation and servicing of assets through our transfer agent and fund administration business. Over time, we see an opportunity to move upstream and capture more value from the growing transaction activity these assets generate. That includes trading and on and off ramping as examples. We have started to do a bit of that, but there is a larger opportunity ahead. We also see a large opportunity to become a more active participant in the on-chain economy where tokenized assets can be lent, traded, and used as collateral. As we mentioned, tokenization creates new opportunities depending on each asset class. In the next section, we'll walk you through the three areas we're most focused today. Treasuries, yield-bearing assets, and public equities. And I'll explain why we believe each category matters, how we're approaching it, and the progress we've made in each area. Before we dive in each area, I want to quickly highlight how productive the second quarter and overall this year has been so far for Securitize. We expanded major institutional partnerships, continued building the utility of our assets across DeFi and on-chain markets, and added important regulatory and marketing infrastructure capabilities. These are all important building blocks for the business, and we'll walk through each of them in more detail over the next several slides. First, I want to emphasize that Securitize continues to be the largest tokenization platform in the industry. We were the only platform with more than 4 billion assets at the end of Q2. And in early Q3, we surpassed 5 billion, becoming the first tokenization platform to reach that milestone as well. Currently, no other platform has surpassed the $4 billion AUM market except us. We've mentioned the diversity of the products we strive to provide. Well, we're also the only platform with more than seven individual assets that exceeded $100 million in AUM products that span multiple asset classes. We are the leader in permission tokenized treasuries. We have the largest tokenized equity in the industry, SEC, our own New York Stock Exchange listed stock, more on that later. We have the largest tokenized institutional fund, BCAP, at close to 1 billion of AUM. We also have one of the largest tokenized credit platforms with more than 450 million in AUM. We're not only the largest platform, we're also winning in many categories. As you can see in this chart from the gray line, crypto market cap peaked in late Q3 2025 and has since then continued declining each quarter to be now at around 50% of the size that it was back then. While we saw some outflows during Q4 and Q1 as a result of the market downturn, our AUM has recovered successfully and in Q2 we're back at $4.2 billion. And as I mentioned in Q3, we already exceeded $5 billion, which is our all time high in tokenized assets. So we have now basically decoupled from the crypto market direction and we're now growing while crypto is declining. We're also closely tracking transaction volume across our platform because it's important for two reasons. First, it is an indicator of the health and utility of our products. Second, we believe it represents an important future monetization opportunity that we have started to explore. There was an unusually large increase in Q4 last year when one of our customers generated significantly peer-to-peer transaction activity across its holdings, followed by a decline in Q1. Outside of that event, transaction volume across the platform has been growing steadily, and in Q2 we had $5.3 billion in volume and a healthy 170% growth from last quarter. Our fund services business was also initially impacted by the declining crypto prices and activity that followed the October 2025 crash. that was driven by lower digital asset prices, which reduced the value of the assets in the funds and therefore the assets under administration. Also, few funds have to close as a result of deteriorated market conditions. However, since then, our assets under administration has remained relatively steady at around $24 billion for the past three quarters. It's very important to note that our asset administrations stay consistent even as the larger crypto market continue to decline that you can see here on the gray line on this chart. We believe that it speaks of the quality and resilience of the fund managers that use Securitize to serve this business. Since we recently went public, we had to overhaul our board of directors As you can see, we have assembled a very strong board with a combination of both ThreatFi and crypto, as well as company veterans and fresh blood that we think will strongly help us on this new stage as a publicly traded company. Let's now look at the business through the lens of each major asset category, starting with yield-bearing assets and treasuries. Yield-bearing assets are in high demand among crypto market participants. They can be used as a reserve asset or a treasury management tool for protocols. It can also be used as collateral for trading and lending across centralized and decentralized markets. This is why we focus on building a broad spectrum of products in this category. At one end are the highly liquid, lower risk products such as stretchers. We'll go in more detail on our work with BlackRock and VanEckter shortly. At the other end of the spectrum are higher yielding products with greater risk or duration, including private credit strategies from firms like Apollo and Hamilton Lane. Early this year, we began filling the gap between those categories with the launch of a AAA CLO product with BNY, and more recently in Q2 with a USAFI product with Atlas. For the rest of the year, we will continue to expand that spectrum with products across areas like corporate bonds, asset-backed securities, and other high-yield strategies. Tokenized Treasures have been one of the fastest growing categories in the entire digital asset tokenization ecosystem. The major catalyst for this growth came in March 2024 when BlackRock chose Securitize to launch Beedle. The chart speaks for itself. When Beedle launched, the total AUM in tokenized treasures had not even reached $1 billion. Today, the market has grown to over $16 billion across a total of 87 products. That represents market growth of 20 times, or a cargo of 250%. As that market has grown, Securitize has solidified its leadership. Today, tokenized treasuries by Securitize represent around 20% of the entire market. And while the growth of that market has been impressive, we believe there is still significant room to grow. If you look at the stable coins today, they represent around a $300 billion market. In traditional finance, the treasury market is considerably larger than the amount of dollars in circulation. So we expect tokenized treasures to continue growing with that pattern in mind. As mentioned, we have established a leadership position through our work with BlackRock, and now we're expanding our product portfolio from private treasury funds into registered funds through the launch of BlackRock's second tokenized fund, the Daily Reinvestment Stablecoin Reserve Vehicle, or B-Reserve. This is the second BlackRock fund tokenized by Securitize, and it's a registered fund designed to be used as a stablecoin reserve asset to address the opportunity created by the Genius Act. Service in Registered Funds is a significantly more complex and demanding task for a transfer agent. So we're very pleased that we managed to meet BlackRock requirements to manage this newly created registered fund. One detail that is particularly interesting is BlackRock's decision to include the word daily reinvestment in the name of the product. That capability illustrates one of the advantages of putting the assets on chain. Using our infrastructure, interest can be efficiently reinvested on a daily basis with a simple blockchain transaction. That process requires significantly less manual intervention and reduces the potential for reconciliation errors. Biddle and Nobby Reserve are differentiated within BlackRock's treasury-based product portfolio, which typically allows for monthly reinvestment, only with our two funds being the only ones that do daily reinvestments. Our ability to support daily reinvestments allows interest to compound more frequently and can enhance the resulting return for investors, making the product more attractive. We also announced our partnership with Atlas Capital, funded by renowned economist and longtime crypto skeptic, Nouriel Roubini. Atlas has developed a product called USFI under a novel concept of a techno-dollar, a diversified strategy combining treasuries, gold, real assets, and strategic commodities that is designed to be resilient across different macroeconomic environments because it's not just backed by dollars and t-bills. The planned USFI token will provide a digital representation data strategy under the novel Dubai's VARA framework. For Securitize, this is significant for two reasons. First, it brings another differentiated yield-bearing asset on-chain with a structured design, as we mentioned, to be resilient across different macroeconomic environments. Second, this marks our first collaboration under VARA in Dubai and gives us a foothold to expand our insurance business in one of the world's leading digital asset jurisdictions. It's another example of how can we expand both the types of assets we tokenize and the markets in which we operate. As I mentioned earlier, one of the reasons we are investing heavily in yield-bearing assets is that we believe they can become a superior form of collateral. That applies to both centralized derivatives exchanges across crypto and traditional finance and to DeFi protocols. In some cases, the advantages come from bringing high-quality assets like treasuries on-chain. In other cases, it comes from enhanced collateral mobility. Tokenized assets can be posted, transferred, and redeemed on-chain 24-7 and near instantly. The centralized trading opportunity is very large, potentially reaching $2 trillion by 2028, with potentially $600 billion of that coming from treasuries and tokenized money market funds. On the decentralized finance side, the Standard Charter projects that the market could reach $2.7 trillion by 2030. Tokenized assets to date represent a very small percentage of collateral used across lending protocols, but that percentage is growing. If tokenized assets make up 10% of that market, that will be a $270 billion market cap. We believe this creates significant opportunity as DeFi protocols are already building mechanisms to integrate tokenized assets into permissionless environments, and we're actively supporting this effort with our regulatory expertise. This shift is already happening, as you can see from this chart. While stablecoin reserves on crypto derivative exchanges have been stagnant, or even declining, the use of treasuries is increasing. Securitize has already secured integrations for BlackRock's Biddle across major crypto derivative exchanges, including Crypto.com, Deribit, Binance, and more recently in this quarter, OKEx, using Standard Chartered Custody Solutions. These integrations increase the utility of Biddle and help life further adoption. The next step is to extend that model to traditional finance derivatives exchanges, like CME, following CFTC's recognition of tokenized treasures as an acceptable form of collateral. We also continue making progress on the DeFi side. For some time, we have been working to integrate tokenized assets compliantly with all the major DeFi lending protocols, including Aave and Morpho. This quarter, we unveiled two on-chain liquidity facilities through our partnership with Thina and Growth, which is part of the Sky ecosystem. We also make progress to integrations with LookScape and Zarta to enable recursive lending. This allows yield-bearing assets to be leveraged multiple times in an efficient manner, while maintaining controls around the collateral and its liquidation. This is a process that is extremely difficult to achieve in traditional finance markets, where lending and issuance processes remain much more manual. On the previous slide, I mentioned our ability to integrate with permissionless DeFi ecosystem in a compliant way. A key part of that capability is the technology called Vault Register, which we released publicly during this quarter. Vault Register allows investors to create vaults that function as a smart scroll for collateral. But we believe this opportunity goes much faster as two super trends, tokenization and AI, converge together. We see this technology as part of the foundation for a compliance layer supporting agent-based tokenized finance. We believe AI power agents will increasingly become a standard way that trading occurs on the internet. and that will be particularly relevant for tokenized assets because those assets are natively digital and programmable. And we intend to help lead the industry development toward that future. Finally, let's move to tokenized equities. This is one of the largest opportunities in the market, given that U.S. equities and ETF markets alone exceed $100 trillion. Think about that. If only 2% of that market moves on-chain, it will double the size of the crypto market today. But tokenized equities currently represent around $2 billion. This is still a rounding error relative to the size of the underlying market. And many of the activities currently synthetic exposure that is offered outside of the United States regulatory framework. The SEC recently outlined a taxonomy that divides tokenized equities into three broad categories. First is issuer-sponsored tokenized equities. In this model, the issuer chooses to tokenize his shares through his registered transfer agent. The token represents the share itself, preserving the applicable shareholder rights without introducing counterparty risks. This is the model security demonstrated with our own equity, which I will discuss in a moment. The second category is the custodial third party model. Here, the token does not represent the underlying share. Instead, it represents a claim on an asset held by a regulated intermediary. This is also a regulated model available in the United States that is the approach that the TTCC is pursuing. We welcome the involvement of a major incumbent like DTC in the space. Their entrance into tokenization expands awareness of the opportunity and encourages traditional financial institutions to think seriously about tokens and wallets. At the same time, we believe this model remains more closely tied to the existing intermediary architecture of traditional finance. Long term, we continue to believe that there is significant benefits to bring assets directly onto public blockchains and enable permissionless innovation around them. The third category is the synthetic exposure we've seen through offshore wrappers. These structures are generally not available in the United States, given that they are not compliant with US regulations. They introduce additional intermediaries and counterparty risk, while potentially creating multiple derivatives representations of the third underlying asset, fragmenting liquidity. We do not believe regulatory arbitrage is the most durable long-term model for tokenized securities, and it is not the approach we're pursuing. So what is Securitize doing to position itself to win in this large but still emerging market? We have assembled what we believe is the most comprehensive and consequential set of partnerships in the tokenized equities industry. And we are only at the beginning of connecting tokenized equities and ETFs with existing capital market infrastructure. First, Securitize has been selected as the tokenization partner for the first and the third largest transfer agents in the industry. ComputerShare is the largest global transfer agent and serves closely to 60% of the Standard & Poor's 500, as well as more than 2,500 U.S. publicly traded companies. Continental Stock Transfer is the third largest transfer agent and has the particular strength among small and mid-cap companies, IPOs, and SPACs. Together, these relationships give us access to very different segments of the public company market. Second, we have partnered with the New York Stock Exchange, the world's largest equity exchange, as it develops a digital ATS designed to support 24-7 trading and instant settlement of tokenized equities and ETFs alongside its traditional business. Securitize has been selected as the design partner for the ATS, as well as an initial transfer agent and tokenization partner. Our broker dealer is also expected to connect to their ATS and provide investor flow. Third, we have partnered with Jam Trading. The largest crypto market maker and one of the largest proprietary trading firms in the world. Jamf is acting as a market maker for tokenized equities, beginning with our own stock. And finally, we want tokenization to extend beyond secondary trading into capital formation. We want investors with digital wallets to be able to participate in IPOs and secondary offerings in tokenized form. This is why we've partnered with Cantor Fitzgerald, one of the leading investment banks in SPACs and digital assets, to explore enabling these offerings through our infrastructure and recently expanded regulatory capabilities. And I want to emphasize that the partnerships we've announced so far are only the beginning. We continue to have conversations with many of the largest participants in the industry that are highly interested in tokenization, and we look forward to building a broader ecosystem for bringing capital markets on the chain through tokenization. But we also believe in walking the talk. So when Securitize became a public company, we did something that had never been done before. We made our own equity available on-chain on the same day our shares began trading on the New York Stock Exchange. The same share and the same rights, but in token format, issue on a public blockchain. We do not believe on-chain markets yet have the same depth of liquidity as traditional markets. But we do believe that two markets can be complementary and can coexist. So we put our own stock on chain through a regulated structure using Continental as our transfer agent and securitized tokenization infrastructure. Tokenizing SECZ was available on listing day, including to eligible investors in the United States. It immediately became the largest tokenized equity in the industry. More importantly, we demonstrated that it's possible to tokenize U.S. public equity within the existing regulatory framework. There is a tendency in crypto to assume that offshore synthetic structures are necessary because compliant tokenization cannot be done in the United States. We have always said this is not the case, and we have now demonstrated otherwise. We issued tokenized SEC on Volavalan and Solana, two of our long-standing existing partners. Doing so also demonstrated our ability to support multiple blockchain ecosystems simultaneously through our multi-chain infrastructure. But we did more than simply issue the shares on-chain. We enabled TokenizedSCC to trade through atomic swaps, again, USDC, from self-custody wallets with Jam Trading acting as a market maker, using a very familiar process and UI for any person that has traded crypto on-chain before. We did that while operating within the regulatory requirements governing public securities in the United States. So again, it's possible. The next step is to continue increasing the utility of TokenizedSCC and to bring additional equities on-chain. For anyone listening this call who wants to experience this directly, I encourage you to visit stocks.securitize.io. You can create a Securitize ID, complete a simple KYC process, connect your wallet, and use USDC to begin trading. For anyone that has traded crypto before, the experience should feel very familiar. And if you haven't, we encourage new users to introduce themselves to the platform and technology we're so proud of. When you purchase tokenized SEC, you receive the shares directly in your wallet at pricing tied to the traditional markets. The key difference is that settlement happens immediately into your wallet, allowing you to hold, use, or transfer the asset directly rather than rely entirely on a third-party broker dealer to custody it for you. Let me now close with a brief update on the regulatory environment. Under Chairman Paul Atkins, the SEC has taken a much more constructive approach towards tokenized securities. Over the past year, we've seen greater clarity around the use of public blockchains by transfer agents, broker-dealer custody, and the different models for tokenized securities. We have also continued expanding our own regulatory capabilities. Securitized market now has the ability to custody and facilitate trading of tokenized securities, supporting atomic settlement against stablecoins, and participate in initial and secondary tokenized offerings. There are additional regulatory developments under discussion in Washington. that could make it easier for tokenized markets to grow, including an innovation exemption and more practically costly frameworks that the ESC has announced that some of these things are actually coming as soon as Friday this week. We will certainly welcome those developments, but importantly, our business does not depend on them, although it will benefit from them. Securities that have spent years building within the existing US regulatory framework, we are already issuing, servicing, trading, and selling tokenized securities today. So additional regulatory clarity can accelerate the market and expand our opportunity. But we don't need to wait for Washington to build the business. We're already operating. Okay, let me close where I started with our mission to tokenize the world. When we founded Securitize nearly nine years ago, that ambition sounded incredibly bold. Today, some of the largest institutions in global finance increasingly share that vision. As BlackRock's chairman and CEO Larry Fink has said, Every stock, every bond, every fund, every asset can be tokenized. We agree with our partners at Blackbird. And if that is where financial markets are going, the opportunity in front of Securitize is enormous. We've spent nearly a decade building the technology, regulatory infrastructure, products, and institutional partnerships required to make that future possible. We're still early, but the direction is becoming clearer every day. And we believe we've never had a better position to do it. With that, I will turn over to our CFO, Francisco Flores, to work you through our financial results. Thank you.