Securitize Is Said In Talks With Cantor SPAC

Watch Securitize Is Said In Talks With Cantor SPAC - Bloomberg on Dailymotion

Transcript

00:00Give us the details. What do we need to know about Securitize?

00:03Hey, Scarlett. Securitize is a tokenization company. We reported that it is going public

00:09through a SPAC, a trend we haven't seen in a long time. The deal will value Securitize at over a

00:15billion and it will be listed in the public market after. And what's the benefit of Securitize

00:22going public versus staying private? So it definitely is about gathering capital with a

00:30list of vehicle. They have a lot more flexibility in raising equity. The interesting about Securitize

00:36is that it actually is a vehicle or a company that is trying to turn e-liquid asset in the

00:43traditional sense. For instance, think of like the KKR private equity fund or some sort of private

00:49equity fund that usually you cannot trade like and liquid asset. And with the tokenization,

00:55you can trade the exposure of these assets. So for this kind of company to go public in the

01:00traditional way, in a traditional equity market, that is giving a lot of testament to how they think

01:06about the equity that will be available to them. And you mentioned this would be through a SPAC,

01:10those special purpose acquisition companies, a SPAC that was started actually by Cantor Fitzgerald,

01:16which has a vested interest in the development of the crypto industry.

01:22So Cantor is a very interesting company right now. It's at a very critical spot within the crypto

01:26industry. They really have built out the crypto investment banking coverage team. And with Hal

01:32Lutnik being in the administration and Cantor Fitzgerald, the investment bank being run by his son,

01:37this particular SPAC, it actually counts Brandon Lutnik, the son of Hal Lutnik, as the CEO and

01:44chairman. The company Cantor is also very close to Tether. And so there is a lot of exposure to

01:51crypto that Cantor is in right now. They've actually raised four SPACs. And number one has

01:56already announced a deal. This we are expecting some sort of announcement in the near future.

02:01And we can see the remaining two potentially also going into something in the crypto world.

02:06But we haven't heard much on those yet.

02:08Now, you mentioned that we haven't seen this trend of companies going public through SPAC in a while,

02:13back in the days, you know, in the middle of the pandemic, when it was really the trend.

02:17If Securitize moves forward with this, how quickly could it be publicly traded?

02:24So we don't know when the announcement is supposed to hit. But traditional sense is that

02:29SPAC is actually a way quicker avenue towards the public market than a traditional IPO.

02:34With the IPO, you have to go through your roadshow process. You have to go meet all the investors

02:40one-on-one. And you have to go gather your book for maybe five, six days.

02:45But with a SPAC, you really just strike a deal with the SPAC.

02:49You have one counterpart instead of maybe 200 potential investors.

02:54So this is potentially a quicker avenue. But whether this will attract any regulatory scrutiny,

03:01it would remain to be seen. But today's environment is much more relaxed than it used to be.

03:07So we could see how SPAC and crypto together, it could still be fun as a public company.