Tokenized equities platform xStocks has teamed up with alternative investment manager Fundrise to bring the newly public Fundrise Innovation Fund onchain, widening access to late-stage private market exposure. The tokenized share, expected to trade as VCXx, is slated to launch on xStocks in the coming days, the companies said.
The announcement follows the closed-end fund’s recent listing on the New York Stock Exchange. The fund’s portfolio reportedly includes private stakes in technology companies such as Anthropic, Databricks and SpaceX, giving retail investors indirect exposure to high-growth private assets.
The Fundrise Innovation Fund drew sharp price volatility after its March 19 debut. The stock opened at about 31 dollars per share and surged in early trading to as high as 575 dollars. That rally was followed by scrutiny after a short-seller report from Citron Research, published on Thursday, noted that Fundrise Advisors LLC faced SEC action in 2023 related to paid solicitation activities. The report urged regulators to examine whether current promotional arrangements involve compensation to influencers for promoting VCX. Shares ended the week around 173 dollars, down roughly 34 percent on Friday, and fell another 5.9 percent in after-hours trading.
Fundrise co-founder and CEO Ben Miller pushed back on the criticism, calling it a smear campaign and defending the fund’s strategy and the firm’s efforts to broaden investor access to private tech companies.
The Fundrise move comes amid growing momentum for real-world asset tokenization. Data from RWA.xyz show tokenized equities surpassed 1 billion dollars onchain earlier this month. Market activity is concentrated among a small number of providers: Ondo controls an estimated 58 percent of tokenized stock value, while xStocks-issued products make up about 24 percent, creating an early duopoly.
A March 10 report from Foresight Ventures suggested the tokenized equities market is consolidating around these leaders, citing regulatory complexity, liquidity advantages and varying tokenization approaches as key competitive drivers. Investors considering tokenized securities should weigh regulatory and liquidity factors and verify information independently.