Tokenized equities platform xStocks has partnered with alternative investment firm Fundrise to put the newly public Fundrise Innovation Fund onchain, broadening access to late-stage private market exposure.
The single tokenized asset, VCXx, is expected to launch on xStocks in the coming days, the firms said in a Friday announcement. The move follows the closed-end fund’s recent debut on the New York Stock Exchange; its portfolio includes private stakes in companies such as Anthropic, Databricks and SpaceX.
After its March 19 debut price of $31, the stock initially spiked to as high as $575 per share in early trading. A short-seller report by Citron Research published Thursday, however, highlighted that Fundrise Advisors LLC faced SEC action in 2023 related to paid solicitation activities and urged regulators to investigate whether the firm is currently compensating influencers to promote VCX. The shares finished the week at $173, down almost 34% on Friday, and fell a further 5.9% in after-hours trading.
Fundrise Innovation Fund co-founder and CEO Ben Miller told CNBC that criticism amounted to an unfounded smear campaign and defended the fund’s strategy and efforts to expand investor access to private tech companies.
Tokenized stocks crossed $1 billion in total onchain earlier this month as interest in real-world asset (RWA) tokenization grows. Data from RWA.xyz shows the value of tokenized equities surpassing the $1 billion mark, with much activity concentrated among a few operators: Ondo holds about 58% of the tokenized stocks market while xStocks-issued products account for roughly 24%, forming an early duopoly.
A March 10 Foresight Ventures report suggested the market is consolidating around these leaders, citing regulatory hurdles, liquidity advantages and differing tokenization models as key competitive factors.
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