Tokenized equities framework xStocks has announced a partnership with alternative investment platform Fundrise to bring the newly public Fundrise Innovation Fund onchain. The single tokenized asset, designated VCXx, is expected to go live on the xStocks platform within days, according to a Friday announcement. The move expands onchain access to late-stage private market companies held within the fund’s portfolio.
The Fundrise Innovation Fund only recently began trading on the New York Stock Exchange as a closed-end fund, with a portfolio that includes private shares in technology companies such as Anthropic, Databricks, and SpaceX. Early trading activity was dramatic, with the stock climbing from its March 19 debut price of $31 to a high of $575 per share. The rapid rise drew significant attention from both retail and institutional observers.
The fund’s strong start was followed by a sharp reversal after short seller Citron Research published a critical report on Thursday. The report noted that Fundrise Advisors LLC had faced charges from the SEC in 2023 related to paid solicitation activities. Citron also called on regulators to examine whether the firm is currently compensating influencers to promote VCX shares.
The fund’s shares ended the week at $173, representing a decline of nearly 34% on Friday alone, before falling an additional 5.9% in after-hours trading. Fundrise co-founder and CEO Ben Miller appeared on CNBC on Friday to respond to the criticism, characterizing it as an unfounded smear campaign. Miller defended the fund’s overall strategy and its stated goal of broadening investor access to private technology companies.
The partnership arrives at a notable moment for the broader tokenized equities sector. Tokenized stocks surpassed $1 billion in total onchain value earlier this month, according to data from RWA.xyz, as platforms offering blockchain-based exposure to traditional equities attract growing investor interest and liquidity. The milestone reflects accelerating momentum in the real-world asset sector more broadly.
Market concentration remains a defining feature of the tokenized equities landscape. RWA.xyz data indicates that Ondo holds approximately 58% of the market, while xStocks-issued products account for roughly 24%, forming what analysts describe as an early duopoly. Foresight Ventures noted in a March 10 report that the market is consolidating around these early leaders, citing regulatory barriers, liquidity advantages, and differing tokenization models as key competitive factors.
Originally reported by CoinTelegraph.
