Key Highlights
- Fundrise has teamed up with xStocks to create VCXx, an on-chain tokenized version of its VCX fund.
- The underlying fund provides exposure to private equity stakes in SpaceX, OpenAI, Anthropic, and Databricks.
- The total market capitalization of tokenized equities on blockchain networks surpassed $1 billion this month.
- Following its NYSE debut, VCX shares rocketed from $31 to $575 before plummeting to $173 amid short-seller criticism.
- The xStocks platform boasts over $25 billion in cumulative transaction volume and more than 100,000 unique wallet holders worldwide.
Alternative investment firm Fundrise and blockchain-based equities platform xStocks have unveiled plans to launch a tokenized version of the Fundrise Innovation Fund. The digital asset, designated as VCXx, will debut on xStocks in the near future.
Trading on the New York Stock Exchange as VCX, the Fundrise Innovation Fund is structured as a closed-end investment vehicle holding private equity positions in several prominent technology firms. Its portfolio includes high-profile names such as SpaceX, [[LINK_START_0]]OpenAI[[LINK_END_0]], Anthropic, and Databricks.
The fund made its NYSE trading debut on March 19 with an opening price of $31 per share. Strong initial investor interest drove the share price to a peak of $575 within just days of the listing.
The rally proved short-lived, however, as shares collapsed following commentary from Citron Research on Thursday. The short-selling firm highlighted a 2023 SEC enforcement action against Fundrise Advisors LLC concerning undisclosed paid promotional activities and questioned whether the company might be compensating social media influencers to boost VCX visibility.
By week’s end, VCX closed at $173—a single-day drop of nearly 34% on Friday—with an additional 5.9% decline in extended trading. Fundrise CEO Ben Miller responded to the allegations in a CNBC interview, characterizing the criticism as a baseless smear effort and standing by the fund’s investment strategy.
Understanding the Tokenization Process
Through the tokenization of VCX, xStocks and Fundrise aim to democratize access to private market investments for a wider international audience. Traditionally, gaining exposure to late-stage private companies like those held within the VCX portfolio has been limited to institutional capital and accredited high-net-worth individuals.
The VCXx token is engineered to function seamlessly across multiple digital wallets, blockchain protocols, and decentralized trading venues. Additionally, it will enable functionality within decentralized finance ecosystems, including use as collateral for loans and other DeFi applications.
xStocks operates on technology infrastructure provided by Payward, the entity behind cryptocurrency exchange Kraken. The platform currently supports tokenized versions of more than 100 stocks and exchange-traded funds, having facilitated over $25 billion in aggregate trading volume among more than 100,000 distinct users globally.
Payward has also recently entered into a collaborative agreement with Nasdaq to investigate methods of integrating conventional equity markets with blockchain-based infrastructure, a development that aligns closely with this VCX tokenization initiative.
Tokenized Equity Market Reaches $1 Billion Milestone
This collaboration between xStocks and Fundrise arrives as the tokenized stock sector achieves a significant benchmark. According to analytics from RWA.xyz, the combined value of tokenized equities on blockchain networks surpassed $1 billion earlier this month.
Market concentration is evident among two primary platforms. Ondo commands approximately 58% of the total market share, while xStocks represents about 24%, based on data from RWA.xyz.
A research report released in March 2025 by Foresight Ventures indicated that the market is experiencing consolidation around these pioneering players, attributing the trend to regulatory hurdles, liquidity network effects, and variations in tokenization frameworks.
According to the latest information available, VCXx is scheduled to become available for trading on the xStocks platform in the coming days.
