Tokenized equities platform xStocks has partnered with alternative investment platform Fundrise to launch the Fundrise Innovation Fund on-chain, expanding investor access to late-stage private technology companies. The new tokenized asset, known as VCXx, is expected to go live on the xStocks platform in the coming days.
The Fundrise Innovation Fund recently began trading on the New York Stock Exchange, holding private stakes in major technology firms including Anthropic, Databricks, and SpaceX. Early trading activity showed sharp volatility, with the fund rising from its March 19 debut price of $31 to as high as $575 per share before dropping significantly.
Market Volatility Follows Short Seller Report and Regulatory Concerns
The fund faced renewed scrutiny after Citron Research released a report highlighting that Fundrise Advisors LLC previously faced SEC charges in 2023 related to paid solicitation activities. The report also urged regulators to examine whether influencers were being compensated to promote the VCX asset.
Following the report, the fund’s shares closed the week at $173, marking a decline of nearly 34%, before losing an additional 5.9% in after-hours trading. Fundrise co-founder and CEO Ben Miller rejected the claims, calling them an unfounded smear campaign and reaffirming the company’s strategy to broaden access to private technology investments.
Tokenized Stocks Market Surpasses $1 Billion Amid Sector Consolidation
Growth in tokenized equities continues as total on-chain value exceeded $1 billion, according to data from RWA.xyz. The sector remains concentrated among a few dominant platforms, with Ondo controlling about 58% of the market, while tokenized stock products issued through xStocks account for roughly 24%, forming an early duopoly.
A March 10 report by Foresight Ventures noted that regulatory barriers, liquidity advantages, and differing tokenization models are accelerating consolidation around early market leaders, shaping competition across the real-world asset tokenization sector.
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