Securitize and Socios team up to tokenize equity in pro sports teams

Tokenization firm Securitize and Chiliz Group-powered Socios.com are partnering to develop regulated tokenized equity offerings representing minority stakes in professional sports teams, under the Socios Equity Token brand.

Socios.com will lead sports-industry and fan relationships, while Securitize (SECZ) will handle regulated securities issuance, investor onboarding, ownership records and transfers across its U.S. and European infrastructure.

"By connecting fan engagement with regulated tokenized equity, the partnership is intended to serve two distinct audiences: eligible fans seeking a deeper economic relationship with the teams they support, and institutional and private-equity investors seeking exposure to a high-value alternative asset class," the firms said in a press release.

The initiative is expected to be the first project launched through Securitize’s fully authorized European Trading & Settlement System under the EU DLT Pilot Regime, potentially giving eligible fans and institutional investors greater access to the estimated $500 billion global professional sports franchise market.

Socios.com has issued "fan tokens" with more than 70 sports organizations, the majority of which are soccer-based clubs.

Details regarding participating teams, offering terms, investor eligibility, and supported blockchain networks will be announced when individual offerings are approved.

"Professional sports teams represent a significant asset class that has remained largely private and difficult to access," Securitize CEO Carlos Domingo said in a statement. "Securitize's regulated infrastructure in the United States and Europe can provide teams and their owners with a new way to issue and administer equity while preserving the investor protections and ownership rights that should come with a regulated security."

The market cap for tokenized real-world assets has more than doubled over the past year, nearing $40 billion, RWA.xyz data shows.

Securitize went public on the New York Stock Exchange in July amid its $400 million SPAC deal. Notably, Securitize also launched tokenized versions of full SECZ shares on Solana and Avalanche that same day, an industry first.

"I think the timing is really good because we're approaching a tipping point in tokenization for financial services generally, and Securitize is, in my view, in the clear leading position as an infrastructure builder, "Securitize President Brett Redfearn told The Block at the time.