Graham Ferguson of Securitize Explores Tokenization, Regulation, and Market Trends at Token2049 Singapore

On October 2, Graham Ferguson, Head of Ecosystem at Securitize, sat down for an exclusive interview with Block Media during the Token2049 event in Singapore. Ferguson delved into the intricacies of Securitize’s business model, the transformative benefits of tokenization, regulatory strategies, institutional partnerships, retail investor access, and insights into the South Korean market. By shedding light on these topics, Ferguson underscored Securitize’s commitment to advancing the global tokenization ecosystem.

Introducing Graham Ferguson and Securitize

“My name is Graham Ferguson, and I am Head of Ecosystem at Securitize,” began Ferguson. He explained how his career roots stemmed from working at early-stage cryptocurrency startups, where cutting-edge innovation inspired him. “I joined Securitize because of its vision to connect institutions on-chain securely and in compliance with regulations.”

Pioneering Operations in the Tokenization Space

Securitize’s scale and impact set it apart as a leader in tokenization. Ferguson emphasized the extent of its achievements: “Through our tokenization platform, we’ve partnered with top-tier asset managers such as BlackRock, Apollo’s private credit fund, and Hamilton Lane. Additionally, we’re licensed as a broker-dealer, alternative trading system (ATS), and transfer agent. Our Securitize Fund Services (SFS) oversees $40 billion in assets, making us the largest crypto fund services provider in the industry.”

Tokenization’s Role in Enhancing Traditional Finance

Ferguson pointed out tokenization’s transformative power in financial markets. “The key advantage of tokenization is global distribution. It meets the growing demand for secure, reliable access to high-quality assets on-chain. While our main focus is institutional clients, retail investor interest is also growing, and it’s something we expect to cater to down the road.”

Asset Classes Leading Tokenization Growth

Several asset classes are driving tokenization adoption forward, Ferguson noted. “Cash-equivalent products like BlackRock’s BUIDL fund and stablecoins are expanding rapidly on a global scale. Additionally, private credit products are gaining momentum by enabling investors worldwide to access the same core assets. Pre-IPO equity and tokenized stocks also hold tremendous promise but require precise coordination between issuers, platforms, and regulators to realize their full potential.”

Competitive Differentiation: Direct Asset Access

When asked about differentiation, Ferguson drew attention to one pivotal aspect: “Unlike competitors such as Robinhood, we don’t employ asset wrapping or require special-purpose vehicles (SPVs). Investors using Securitize gain direct access to underlying assets, making collaboration with major partners easier. Above all, our regulated operational framework remains our defining advantage.”

Robust Commitment to Regulatory Compliance

Regulatory trust is foundational for Securitize. Ferguson explained, “We maintain close ties with authorities, including a former director of the SEC’s Division of Trading and Markets on our team. Our Chief Legal Officer regularly liaises with policymakers in Washington, D.C. Establishing and preserving trust with regulators is one of our greatest strengths.”

Bridging Traditional Finance with Crypto Innovation

Ferguson acknowledged the challenges posed by regulatory processes. “Traditional finance operates on conservative frameworks, while crypto thrives on innovation. Bridging this cultural and operational gap has been a lengthy journey requiring candid dialogue and mutual understanding. It’s an effort, but one worth making.”

Strategic Collaborations with Financial Institutions

Highlighting partnerships as a cornerstone of growth, Ferguson detailed key collaborations. “Look at BlackRock’s BUIDL fund—Securitize is their exclusive tokenization partner. Beyond this, BlackRock is exploring stablecoin opportunities with us. Additionally, we’re working with projects like Athena and USDTV to diversify offerings and revenue streams through strategic partnerships in the growing tokenization space.”

Opening Doors for Retail Investors

Although Securitize’s current focus is institutional clients, retail investors are central to its long-term mission. “We don’t currently offer retail-centric products, but democratized asset access remains a priority,” noted Ferguson. “Large asset managers are preparing tailored solutions for retail markets, and we hope to facilitate secure on-chain access for everyday investors soon.”

Competitive Edge in an Evolving Market

Securitize is well-positioned in the burgeoning tokenization industry, delivering unmatched regulatory compliance and expertise. “Our tokenization services manage a $40 billion fund—the largest in the sector. While the market for tokenized real-world assets (RWAs) has doubled over the past year, the industry is still in nascent stages. We’re committed to maintaining our leadership and driving market expansion,” Ferguson explained.

Operating Across Blockchain Networks

Securitize’s network interoperability is a unique advantage. “We currently operate on 14 blockchain networks, evaluating each for factors like growth in assets under management (AUM), investor demand, and issuer priorities. Beyond technical integration, aligning the strategic interests of investors, issuers, and platforms is at the core of successful tokenization.”

South Korea: A Market on the Brink of Transformation

Reflecting on his recent trip to South Korea, Ferguson shared valuable insights. “Institutional interest in tokenization there is unprecedented, despite the conservative regulatory environment. Once frameworks are clarified, we aim to align with South Korean institutions to introduce tokenized solutions designed for global markets.”

Emerging U.S. Regulatory Clarity

Ferguson provided updates on regulatory developments in the United States. “With changes in the administration, the U.S. has advanced regulatory clarity. The government’s expressed intention to integrate digital assets into a structured framework is a positive indicator for the industry’s future development.”

Looking Forward

In closing, Ferguson summarized Securitize’s mission and vision for the future. “Since 2017, we’ve prioritized regulatory collaboration to ensure secure on-chain access for institutional and retail investors alike. Moving forward, we are determined to lead the global tokenization movement, fostering secure, transparent financial markets that benefit all stakeholders.”