Citi downgrades Securitize to neutral as tokenization revenue questions mount
RWA Signal Insight
InfrastructureOn October 13, 2026, Citi analyst Pete Christiansen downgraded tokenization platform Securitize (NYSE: SECZ) from Buy to Neutral, despite raising the price target from $10 to $14. While Securitize reported a 16% year-over-year increase in assets under management to $4.3 billion and a 147% surge in transaction volume to $5.3 billion, revenue trends remain concerning. Tokenization revenue fell 12% quarter-over-quarter to $7.8 million, leading the company to lower its full-year 2026 revenue guidance to between $70 million and $80 million. Christiansen cited concerns regarding the company's ability to effectively monetize growing transaction volumes and potential share price pressure from upcoming lockup expirations. This downgrade highlights a broader market tension where high adoption of RWA infrastructure does not yet guarantee proportional financial returns for service providers. The shift reflects investor caution as they evaluate whether tokenization platforms can bridge the gap between blockchain utility and sustainable profitability. Ultimately, the move underscores the difficulty of valuing RWA-focused firms as they compete for capital against more established digital asset infrastructure players.
Key points
- Securitize downgraded to Neutral by Citi despite a price target increase to $14.
- Q2 2026 tokenization revenue dropped 12% to $7.8 million despite rising transaction volumes.
- Full-year 2026 revenue guidance cut to a range of $70 million to $80 million.
- Securitize reported a $5.5 million quarterly loss in adjusted EBITDA.
Background
Securitize is a financial technology firm that provides infrastructure for the tokenization of real-world assets, enabling traditional financial instruments like private equity and funds to be issued and managed on public blockchains. By digitizing these assets, the platform aims to increase liquidity, transparency, and accessibility for institutional and retail investors. It functions as a bridge between legacy financial systems and decentralized ledger technology.