SECZ

Company Milestone & Strategic Positioning

• This is Securitize's first earnings call as a public company, marking the end of the debate over whether tokenization is a real market. The company is positioned to lead the secular shift of global capital markets on-chain, a multi-trillion dollar long-term opportunity.
• Securitize built the most comprehensive, regulated end-to-end tokenization stack in the industry, including a registered transfer agent (registered 2019), the largest digital fund administration business, a fully registered investment advisor (as of early Q3 2026), a broker-dealer, and an alternative trading system (ATS) to support primary and secondary trading.
• The company has decoupled its growth from broader crypto markets: while total crypto market cap has fallen 50% from its 2025 Q3 peak, Securitize's tokenized AUM rebounded to an all-time high of $5 billion in early Q3 2026, making it the first tokenization platform to reach this milestone. It is the only platform with 7+ individual assets exceeding $100 million AUM across multiple asset classes.
• Total platform transaction volume grew 170% quarter-over-quarter to $5.3 billion in Q2 2026, after excluding an unusual one-time large transaction in Q4 2025.

Key Product & Partnership Progress

• Yield-bearing assets & tokenized treasuries: Securitize holds ~20% market share of the fast-growing $16 billion tokenized treasuries market, which grew 20x since BlackRock launched its first tokenized fund (BUIDL) on Securitize infrastructure in March 2024. It recently launched BlackRock's second registered tokenized fund, B-Reserve, which enables daily interest reinvestment (a capability enabled by on-chain infrastructure that outperforms traditional monthly reinvestment). The company also announced a new USFI product with Atlas Capital under Dubai's VARA framework, marking its first expansion into this jurisdiction.
• Collateral integrations: BUIDL has been integrated with major crypto derivatives exchanges including Crypto.com, Deribit, Binance, and OKEx, and the company is targeting expansion to traditional exchanges like CME following CFTC recognition of tokenized treasuries as acceptable collateral. It also launched compliant integrations with major DeFi lending protocols and released Vault Register, a new technology to enable compliant collateral management for on-chain assets.
• Tokenized equities: Securitize pioneered compliant issuer-led tokenized U.S. public equity by launching its own NYSE-listed tokenized SECZ shares on-chain on listing day, demonstrating that compliant on-chain tokenization is possible within the existing U.S. regulatory framework. It has assembled key industry partnerships including the first and third largest transfer agents (Computershare and Continental Stock Transfer), the New York Stock Exchange (as design partner for its new digital ATS for 24/7 trading), leading market maker GSR, and investment bank Cantor Fitzgerald for tokenized IPO/secondary offerings.

Regulatory Update

• The SEC under Chairman Paul Atkins has taken a more constructive approach to tokenized securities, with new clarity expected on key frameworks in the near term. Securitize has already built its entire business within the existing U.S. regulatory framework and does not require new regulation to operate, though additional clarity will accelerate market growth.

• Securitize revised its full-year 2026 total revenue guidance downward to a range of $70 million to $80 million, from the prior expectation of $85 million. The downward revision reflects slower-than-expected growth in the broader crypto market, stablecoin market, and overall RWA tokenization market compared to 2025 November forecasts.
• Even at the midpoint of the new guidance range, the company still expects full-year 2026 revenue growth of over 20% year-over-year, which is considered strong performance against the current industry backdrop.
• No material interest expense is expected in Q3 2026, following the conversion of all $80 million in outstanding convertible notes to equity upon completion of the business combination on July 1, 2026.
• No material non-cash fair value adjustments for complex financial instruments are expected in future quarters after Q2 2026, as these were one-time costs related to completing the business combination.
• One-time public listing costs will be largely completed by the end of Q3 2026, with no material one-time listing-related costs expected in Q4 2026 or 2027. Operating expenses are expected to stabilize after 2026, with only modest headcount and inflation-related increases going forward.

Securitize reports two core revenue segments for Q2 2026:

1. Tokenization Revenue: $7.9 million, accounting for 54.9% of total Q2 2026 revenue. This represents a 12% year-over-year decrease, driven by fewer new on-chain protocol integrations (the prior year period benefited from a higher volume of new launches). Tokenization revenue is inherently volatile quarter-to-quarter due to its project-based nature.
2. Asset Servicing Revenue: $6.6 million, accounting for 45.1% of total Q2 2026 revenue. This represents a 3% year-over-year increase, driven by steady growth in the underlying AUM base. Assets under administration have remained stable at ~$24 billion for three consecutive quarters even amid broader crypto market declines.

• Broader crypto market downturn, stagnation in the stablecoin market, and slower-than-expected RWA market growth have put pressure on near-term AUM and revenue growth, with current year-to-date RWA market size at $38 billion versus the prior forecast of $77 billion by end-2026.
• New product launches with large institutional partners have third-party dependencies that can cause delays, shifting revenue recognition between quarters.
• Competition from both existing traditional financial incumbents and new crypto-native tokenization platforms creates market uncertainty, though management believes Securitize's full-stack regulated infrastructure gives it a unique competitive advantage for working with large institutional issuers.
• Near-term revenue still has meaningful exposure to crypto-native counterparties, creating short-term correlation to crypto market performance even as the business diversifies into traditional finance.

Q: What drives existing large asset management partners to launch additional tokenized products, what are the incremental economics, and how do tokenized equity economics differ from other asset classes? / A: Most partners launch one product first to test the process, refine features through iterations, and confirm market adoption before launching additional products. The process of onboarding a large institutional asset manager is very lengthy and requires extensive due diligence, so scaling with existing clients is much more efficient than onboarding new ones. The platform has high operating leverage, as most infrastructure investments are already complete, so incremental revenue from new products flows disproportionately to the bottom line. For tokenized equities, transaction revenue will be a much larger component of overall revenue than for less liquid assets like treasuries or private credit, as equities see far more trading activity. Securitize will capture transaction revenue as a connected broker-dealer to the NYSE's new digital ATS in addition to tokenization and servicing revenue.

Q: How should investors think about structural versus transitional expenses, and what is the outlook for the competitive landscape? / A: Approximately $3.5 million in year-to-date Q2 2026 expenses are one-time transitional costs related to going public, with only small remaining one-time costs expected in Q3 2026 and none after that. Headcount will see only modest growth for the rest of 2026, and the cost base will stabilize in 2027, with only minor inflation-adjusted increases. Most costs are fixed, so revenue scaling will directly flow to improved margins. In terms of competition, offshore synthetic tokenization models do not compete for issuer-led mandates as they are not compliant with U.S. regulation. For equities, Securitize has exclusive partnerships with top transfer agents, leaving little direct competition, and few competitors have the full set of regulated capabilities (transfer agent, broker-dealer, ATS) required to serve large U.S. institutional issuers. Traditional incumbents are behind on technical development, while most new entrants lack the operational experience and regulatory approvals to work with tier-one asset managers.

Q: How does DTCC's upcoming tokenization launch impact Securitize, and will the market split by model or asset class? How does Securitize's multi-chain model work if Canton becomes the dominant institutional chain? / A: DTCC's entry into tokenization is positive overall, as it increases market awareness and pushes traditional institutions to explore tokenization. DTCC uses a different model that tokenizes entitlements while keeping shares centralized, while Securitize does native on-chain tokenization. The two models solve different problems and will coexist in the market; there is a clear path for both models to serve different user segments. Securitize is focused on public blockchains, where open permissionless innovation occurs, while Canton is focused on closed private institutional ecosystems. Just like open internets coexisted with closed early providers, and public clouds coexist with private clouds, public and private chain models will coexist going forward. Public chains enable new types of activity that cannot be done on closed private chains, such as global access to U.S. securities for non-DTCC members and self-custody for individual investors.

Q: Is long-term tokenization growth dependent on a recovery in crypto markets? / A: Long-term, tokenization growth is completely decoupled from crypto prices and crypto market performance, as the bulk of the long-term opportunity is in traditional finance assets. In the short term, there is still some correlation because most current demand for tokenized assets comes from crypto-native market participants, but traditional institutional adoption is growing faster than expected. Once traditional finance adoption of tokenization scales, it will dwarf the crypto-native opportunity by multiple orders of magnitude, eliminating any remaining short-term correlation.