StoneX sees 111% upside for Securitize shares as tokenization revenue rebounds

StoneX Financial reiterated its Buy rating and $18 price target on Securitize, citing new revenue projections and growth opportunities in institutional fund distribution and tokenized equities.

Securitize shares closed at $8.53 on Tuesday, up 22.4% on the day, according to The Block's SECZ price page. StoneX's target implies roughly 111% upside from that level.

In a note to clients on Wednesday, analyst Mark Palmer said Securitize's third-quarter revenue of $18.6 million, record average tokenized assets of $5 billion, and 46% sequential rebound in its tokenization segment supported the firm's investment thesis.

StoneX expects revenue to reach $72.4 million in 2026, $108.2 million in 2027, and $167.9 million in 2028, with this year's target lying within the company's annual revenue guidance of $70 million to $80 million.

The forecasts assume average tokenized assets on the platform will approach $12 billion by 2028, driven by new fund launches, the expansion of Securitize Stocks, and distribution agreements in South Korea ahead of the country's first tokenization rules in February, Palmer said. 

Tokenized equities opportunities 

Palmer identified tokenized equities as a potentially larger opportunity for Securitize. Global equities represent a $169 trillion market, but only about 0.002% of that value is onchain, he said, adding that the tokenized stock market grew fivefold over the past year to $3.2 billion.

Palmer cited CEO Carlos Domingo's comments that Securitize operates under permanent broker-dealer, alternative trading system, and transfer agent registrations, meaning its tokenized stock entitlements do not require issuer consent. That differs from venues operating under the SEC's temporary Innovation Exemption, where some issuers have opted out of tokenized trading pilots.

Securitize launched its tokenized stock product last month, giving eligible investors exposure to U.S. equities through digital tokens backed one-for-one by the underlying shares. The platform had listed 25 stocks by Nov. 2.

Stonex said the company also earns a share of management fees as transfer agent and tokenization provider for BlackRock's BRSRV money market fund. Its Securitize Capital subsidiary collects fees from the Neuberger Berman high-income fund and shares them with the manager as sub-adviser.

"The company’s tokenized assets are at a record level, the world’s largest asset managers continue to choose its platform for their onchain products, and it has the capital, licenses, and product set to pursue the whitespace in tokenized equities and credit," Palmer wrote. 

Securitize also recently agreed to acquire River One, a structured-credit and asset-backed finance platform incubated by Framework Ventures and backed by Maple Finance. CEO Carlos Domingo said the acquisition would allow Securitize to expand into loan origination, generating origination fees and a share of net interest margin alongside its existing servicing and distribution revenue.