London-based tokenization firm xStocks on Monday announced it has migrated the recently launched Fundrise Innovation Fund onto its blockchain platform, allowing qualified investors to buy and trade tokenized shares backed by private-company stakes in SpaceX, Anthropic, Databricks and other high-growth technology firms.
The closed-end Innovation Fund, introduced by U.S. real-estate crowdfunding pioneer Fundrise earlier this month, holds roughly $45 million in secondary-market positions sourced from venture capital managers, according to offering documents reviewed by SourceRated. xStocks said the vehicle has been re-wrapped as an ERC-1400 compliant security token, with initial subscriptions beginning at $500—far below the multimillion-dollar minimums typical of late-stage venture deals.
“Our goal is to open the pre-IPO asset class to a broader pool of investors without sacrificing regulatory safeguards,” an xStocks spokesperson told SourceRated, adding that the digital shares will settle on Polygon and be available for peer-to-peer transfers after a 12-month lock-up.
The move marks the latest attempt to bridge traditional private equity and public-chain infrastructure. Earlier this year, KKR and Hamilton Lane allowed fractional access to select funds on token platforms. Analysts say the strategy can reduce administrative overhead while creating secondary liquidity. “Whether these products gain traction depends on sustained demand and on how regulators ultimately view tokenized securities,” said Alice Wong, digital-assets strategist at Galaxy Digital.
Fundrise, which manages more than $3.3 billion in real-estate assets, quietly registered the Innovation Fund with the U.S. Securities and Exchange Commission under Regulation A+, permitting it to raise up to $75 million annually from retail buyers. The partnership with xStocks does not alter the fund’s regulatory status but gives investors an on-chain claim on the same underlying shares, Fundrise officials confirmed by email.
xStocks plans to list the Innovation Fund tokens on its alternative trading system in the second quarter, pending approval from its FINRA-regulated broker-dealer. Secondary trading could offer an early barometer for pricing in privately held tech giants such as SpaceX, which are rumored to be exploring IPO timelines.
If successful, market participants expect a wave of similar offerings. “Tokenization can compress fund creation costs by up to 40%,” noted a recent Bernstein report. Still, liquidity assumptions remain largely theoretical, and skeptics caution that venture-backed valuations could face sharp corrections if exit markets stay shut.
In the coming months observers will watch whether tighter U.S. oversight of crypto trading platforms extends to security tokens—a factor that could dictate how quickly on-chain private-equity funds scale beyond early adopters.