Tokenization firm Securitize announced the launch of a new subsidiary, Securitize Credit. The Morgan Stanley-backed startup is best known for tokenizing KKR and Hamilton Lane funds. However, it offers a wide array of services relating to asset tokenization, including a FINRA-registered secondary market.
A new subsidiary will run a Securitize Earn program, enabling cryptocurrency holders to lend it stablecoins and tokens such as Bitcoin and ETH.
In turn its Securitize Credit subsidiary will use the funds to grant over-collateralized loans to borrowers who provide collateral in the form of private assets, including digital securities. Some borrowers might enter into repurchase agreements (repo) rather than loans. In other words, people will sell their private assets to Securitize Credit with an agreement to buy it back in a month or three at a marginally higher price.
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