Citi has cooled on Securitize. On October 13, 2026, analyst Pete Christiansen downgraded the tokenization platform (NYSE: SECZ) from Buy to Neutral.
The odd part is that he raised the price target at the same time, lifting it to $14 from $10.
Christiansen’s core worry is simple. Nobody can say with confidence how much revenue tokenization will generate for Securitize, even if the broader market for tokenized assets keeps growing.
Why Citi stepped back
Christiansen pointed to three main concerns. The first is the recent rise in Securitize’s share price, which has pushed investor expectations higher.
The second concern is supply. Lockup agreements could free up more shares for sale, which may add pressure on the stock once those restrictions lapse.
The third issue is monetization. Christiansen acknowledged that tokenization is expected to spread across a range of asset classes. He still sees real questions about how much of that activity the platform can turn into revenue.
Activity is up, revenue is not
Securitize’s second-quarter 2026 numbers show exactly why that question matters. Average tokenized assets under management rose 16% year over year to $4.3 billion. Transaction volume climbed 147% from the prior year to $5.3 billion.
The revenue line told a different story. Tokenization revenue fell to $7.8 million, down 12% from the previous quarter. Total revenue slipped 5% to $14.4 million.
The company also posted an adjusted EBITDA loss of $5.5 million.
Securitize also cut its full-year 2026 revenue guidance to a range of $70 million to $80 million.
The bigger shift in crypto investing
The downgrade lands during a broader rethink of how investors want exposure to digital assets. Citi’s analysis highlights a growing preference for infrastructure-focused businesses over direct crypto exposure.
That trend shows up in Citi’s own calls. The bank has upgraded firms like Galaxy Digital and Gemini as the wider market recovered. Total crypto market capitalization grew from approximately $2.1 trillion to nearly $3 trillion in the third quarter.
Securitize builds the plumbing for putting traditional assets on blockchains, rather than asking investors to bet on token prices. Tokenization means creating a digital, blockchain-based representation of a real-world asset, like a fund share or a bond.
What this means for Securitize and its investors
The central issue for Securitize shareholders is the gap between usage and earnings. Growth in assets under management and transaction volume proves demand exists. It doesn’t prove the company can charge enough for it.
A Neutral rating with a higher price target also sends a nuanced signal. Citi isn’t calling the business broken. It is saying the stock’s recent run may have already captured much of the near-term upside, especially with lockup expirations potentially adding shares to the market.
If investors prefer infrastructure plays, Securitize is competing for that capital against names Citi has recently upgraded, including Galaxy Digital and Gemini.
Watch whether tokenization revenue stabilizes or keeps falling despite rising volume, and whether the company holds its revised $70 million to $80 million guidance. Investors should also keep an eye on the adjusted EBITDA line, where a $5.5 million quarterly loss leaves room for improvement.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.