StoneX Raises Securitize Target Price on Tokenized Stock Growth

StoneX Boosts Securitize Price Target, Citing Shift to Market Operator Role

Wall Street analytics firm StoneX has raised its price target for tokenization platform Securitize (NASDAQ: SECZ) by 50%, from $12 to $18, while maintaining a “Buy” rating. Analysts believe Securitize’s newly launched tokenized U.S. stock trading platform marks a significant transformation for the company, shifting its identity from a mere tokenization provider to a market operator. StoneX projects Securitize’s revenue could reach $198.5 million by 2028.

Securitize Stocks Platform Drives Revenue Shift

StoneX analyst Mark Palmer highlighted that Securitize’s recently introduced tokenized stock trading platform is poised to unlock a substantial new revenue stream. Despite a surge in SECZ’s stock price last week following the announcement of the “Securitize Stocks” platform, the shares dipped 10% in intraday trading on Monday. The new target price still represents an approximately 45% upside from the current trading level.

Palmer noted in his report, “While SECZ’s stock price surged last week on the news of Securitize Stocks’ launch, the market is still valuing it as a tokenization provider, overlooking its transformation into a market operator.”

This distinction is crucial to understanding Securitize’s past and future. According to StoneX data, Securitize facilitated $5.3 billion in trading volume in the second quarter of this year. However, the majority of this volume did not generate revenue. Company management acknowledged during an August earnings call that current tokenization revenue primarily stems from “integration fees” rather than transaction fees.

In essence, Securitize previously earned setup fees for onboarding clients’ assets onto the blockchain. With the launch of Securitize Stocks, the company now earns commissions on each transaction and account service, transitioning its revenue model from one-time charges to recurring income.

Tokenized Equities on Solana

Securitize Stocks, which went live last Thursday, has brought major U.S. stocks like Apple, Nvidia, and Tesla onto the Solana blockchain, with transactions settled in USDC. These tokenized stocks are backed 1:1, with each token representing one share of the underlying equity, entitling holders to dividends and shareholder rights.

StoneX forecasts Securitize’s revenue to approach $120 million in 2027 and nearly $200 million in 2028, representing a compound annual growth rate of approximately 65%. Palmer’s $18 price target implies a 14.5x enterprise value to revenue multiple based on the 2028 projected revenue.

Beyond trading and service fees, StoneX also suggests Securitize could generate additional income from collateralized lending in the future, a standard revenue source for traditional brokerages that remains largely untapped in the crypto space.

Market Skepticism and Regulatory Hurdles

The 10% drop in SECZ shares after StoneX raised its target underscores lingering market skepticism regarding the business model of tokenized equities. A key question remains: when will transaction fee revenue truly materialize at scale?

Historically, traditional brokerages have made slow progress in tokenization. For instance, Morgan Stanley’s tokenized stock offerings are not expected until the first quarter of 2027 and are currently limited to internal institutional use. Securitize, as an external platform, faces distinct regulatory and market acceptance challenges.

Furthermore, a significant portion of Securitize’s $5.3 billion in trading volume may originate from large institutional trades or one-off allocations rather than high-frequency retail trading, suggesting that fee revenue may not scale proportionally with trading volume.

Global Implications and IMF Warnings

For Asian investors, tokenized equities offer the potential to bypass traditional cross-border investment regulations and time lags. Currently, Taiwanese investors seeking to hold stocks like Nvidia or Tesla must do so through overseas brokers or ETFs. If Securitize’s tokenized stocks become available in Asia – the company has partnered with South Korea’s LG CNS for a February launch – Asian users could theoretically trade U.S. stocks directly on Solana using USDC.

However, the International Monetary Fund (IMF) has recently issued warnings about tokenized equities, noting that 24-hour trading leads to 1.5 times higher volatility than traditional markets and that insufficient liquidity could result in sharp price swings. These risk factors will undoubtedly be considered by Asian regulators during their approval processes.

Key Factors for Securitize’s Future

Securitize’s next critical steps involve two key areas: first, the actual trading volume and fee data from its tokenized stock platform. StoneX’s projections are based on the assumption of expanding trading scale, which requires tangible data for validation. Second, regulatory developments, particularly the U.S. Securities and Exchange Commission’s stance on tokenized equities, will determine whether this market can truly take off.

For investors, the narrative of Securitize transitioning from a provider to a market operator is compelling. However, the reasonableness of its valuation hinges on whether revenue can indeed approach $120 million by 2027. StoneX’s 14.5x EV/Revenue multiple is considered high for a tech stock, reflecting optimism for the Real World Assets (RWA) sector.