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Michael Sonnenshein, the former CEO of Grayscale Investments, has been appointed chief operating officer of tokenization platform Securitize, effective December 9, the company announced on Thursday.
This marks a significant move for both Sonnenshein and the fast-growing tokenization sector, which aims to digitize traditional financial assets like stocks and bonds on blockchain networks.
Sonnenshein's decade-long tenure at Grayscale was defined by major milestones, including the launch and eventual ETF conversion of the Grayscale Bitcoin Trust (GBTC). His leadership culminated in Grayscale’s 2023 legal victory against the SEC, a turning point that opened the door for spot Bitcoin ETFs in the U.S. financial markets.
“Michael is a trailblazer whose strategic vision and ability to navigate complex regulatory landscapes have helped pave the way for establishing digital assets as a mainstream investment class,” said Carlos Domingo, CEO and co-founder of Securitize, in a statement.
At Securitize, Sonnenshein is set to leverage his expertise to accelerate adoption of tokenized securities. His role will include strengthening relationships with institutional asset managers, overseeing marketing and sales, and scaling the company’s operations.
“There is massive demand for tokenization, and I am thrilled to join Securitize at such a pivotal moment for the company and the industry,” Sonnenshein said.
Tokenization Takes Center Stage
Securitize has emerged as a key player in the tokenization ecosystem, recently surpassing $1 billion in tokenized on-chain assets. The firm has partnered with asset management giants like BlackRock and Hamilton Lane to offer tokenized investment products, bringing real-world assets into the blockchain era.
In 2024, Securitize launched its Fund Services division to simplify regulatory compliance and operational tasks for major partners. These developments align with growing institutional interest in tokenized products, which promise enhanced efficiency, liquidity, and accessibility compared to traditional financial instruments.
Sonnenshein’s move underscores the growing intersection of traditional finance and blockchain-based innovation. While Grayscale focused on bringing crypto to institutional investors, his new role at Securitize reflects a broader trend of tokenizing traditional financial products like private equity, real estate, and debt instruments.
The platform recently inked a deal with digital asset custodian Zodia to integrate its tokenization technology to bolster support for institutional investors leveraging tokenized securities, including BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), as collateral.
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