07/03/2026
FOR IMMEDIATE RELEASE Civil Case No:1:26-cv-00698
LIQUID RARITY EXCHANGE, LLC (d/b/a RARITYX) FILES LANDMARK PATENT LAWSUIT AGAINST SECURITIZE, INC. FOR *WILLFUL INFRINGEMENT OF FOUNDATIONAL DIGITAL ASSET TOKENIZATION TECHNOLOGIES
Four-Count Complaint Filed in the U.S. District Court for the District of Delaware Targets $1.25 Billion Tokenization Platform Operator; Alleges Securitize Continued Infringing Despite Receiving Notice
WILMINGTON, DELAWARE — Liquid Rarity Exchange, LLC (d/b/a RarityX) ("LRE") announced on June 16, 2026 that it has filed a patent infringement lawsuit against Securitize, Inc. in the United States District Court for the District of Delaware, asserting four counts of patent infringement relating to two foundational U.S. patents covering asset tokenization and fractionalized ownership systems.
The complaint alleges that Securitize, Inc.'s real-world asset ("RWA") tokenization platform and digital securities infrastructure — which serves institutional clients including BlackRock, Hamilton Lane, and VanEck — directly infringe one or more patents owned by Liquid Rarity Exchange, LLC, covering systems and methods related to digital asset tokenization, fractionalized ownership systems, asset administration, provenance tracking, chain-of-title verification, and blockchain-based capital markets infrastructure among other patented technologies developed by Liquid Rarity Exchange.
The action seeks preliminary and permanent injunctive relief, monetary damages including enhanced damages for willful infringement, attorneys' fees, and all other relief available under the United States Patent Act. LRE has demanded a jury trial on all triable issues.
The lawsuit comes at a critical juncture for the rapidly expanding tokenization sector. Securitize itself has described its addressable market as a $19 trillion opportunity in tokenization across equities, fixed income, and alternative assets. The company is currently pursuing a public listing at a $1.25 billion pre-market valuation through a S**C merger with Cantor Equity Partners II, Inc. (Nasdaq: CEPT), and manages over $3.4 billion in tokenized assets under management, including BlackRock's BUIDL fund — the largest tokenized real-world asset fund in the world.
Securitize, Inc.'s planned public listing through its merger with Cantor Equity Partners II, Inc., a S**C sponsored by an affiliate of Cantor Fitzgerald, reflects the increasing convergence of traditional capital markets infrastructure and digital asset tokenization technologies. Upon completion of the transaction, Securitize is expected to trade on Nasdaq under the ticker SECZ and is positioning them as a platform for issuance and management of tokenized real-world assets (RWAs), serving financial institutions seeking exposure to the growing digital asset ecosystem. The transaction values the company at an implied valuation of approximately $1.25 billion.
Liquid Rarity Exchange, LLC has developed and patented foundational technologies in digital ownership systems and asset tokenization well before the emergence of today's institutional RWA industry. Its intellectual property predates and informs core components of modern tokenization architecture, including fractional ownership systems, digital asset marketplaces, provenance tracking systems, cryptography (blockchain) based transaction and settlement frameworks, and other foundational real-world asset ("RWA") applications spanning collectibles, real estate, private and public equity, debt instruments, commodity-linked financial vehicles, and tangible, intangible, and digital assets.
LRE's platform and intellectual property are designed to enable secure, scalable digital asset ecosystems, leveraging cryptographic (blockchain) based distributed ledger technologies to securely track, verify, and administer asset provenance, ownership rights, and transaction records.
Investors should be aware that Liquid Rarity Exchange, LLC's intellectual property portfolio includes, among others: U.S. Patent No. 10,825,090 — Rarity Trading Legacy Protection and Digital Convergence Platform; U.S. Patent No. 8,015,069 — System and Method for Asset Utilization; U.S. Patent No. 8,624,727 — Asset Safety Notification System; Canadian Patent No. 3,017,969 — Rarity Trading Legacy Protection and Digital Convergence Platform; and Canadian Patent No. 2,888,038 — Asset Safety Mobile Notification System. Additional U.S. and international patent applications are pending covering digital asset systems, tokenization architectures, AI-enabled marketplaces, and next-generation capitalization frameworks.
Liquid Rarity Exchange, LLC has undertaken extensive efforts to provide notice of its intellectual property rights to participants in the digital asset and RWA ecosystem, including multiple written communications to industry participants over time. This includes correspondence dated November 19, 2012, addressed to the Chairman and Chief Executive Officer of Cantor Fitzgerald, relating to LRE's early-developed intellectual property and including patented systems, methods, and architecture.
"LRE developed and patented foundational technologies for digital asset tokenization and fractionalized ownership years before these concepts entered the mainstream," said Keith J. Grady, Partner at Kean Miller LLP. "When a company is put on notice that its platform infringes valid patents and responds by continuing and even expanding the infringing activity, the patent laws provide strong remedies, including enhanced damages. We intend to pursue every available remedy on behalf of our client."
LRE emphasizes that it is actively enforcing its intellectual property rights across all RWA ecosystems and will continue to aggressively pursue all available legal remedies against unauthorized use of its patented technologies.
Given the evolving nature and rapid growth of the digital asset and real-world asset ("RWA") tokenization sector, investors and market participants should consider, among other customary due diligence factors, the existence of third-party intellectual property rights, pending and potential enforcement actions, freedom-to-operate considerations, and the broader regulatory, litigation, and commercialization risks associated with blockchain-based financial infrastructure and related technologies.
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Liquid Rarity Exchange, LLC (rarityx.com) is represented by two blue-chip intellectual property and litigation firms: Kean Miller LLP and Tucker Ellis LLP, both recognized for complex patent enforcement and high-stakes technology disputes.
Kean Miller LLP - Keith J. Grady is a Partner and a seasoned intellectual property litigator with extensive experience in complex patent disputes, including claim construction, injunction proceedings, jury trials, and appellate matters.
Tucker Ellis LLP - Thomas J. Giacobbe is an Attorney and Engineer in the Intellectual Property Department, focused on patent litigation, patent prosecution, infringement analysis, and intellectual property strategy, with a background in engineering and technical systems.
Liquid Rarity Exchange, LLC (d/b/a RarityX) - Liquid Rarity Exchange, LLC is a technology and intellectual property company focused on real-world assets, digital asset infrastructure, tokenization systems, fractional ownership platforms, and cryptographic (blockchain) enabled financial architectures. Through its platform and related patented technologies, the company develops systems for asset creation, financing, administration, trading, provenance verification, and digital marketplace participation across physical and across all Real-World Asset classes.
All allegations contained in the complaint are subject to proof in court. Securitize, Inc. denies any allegations unless and until liability is established through final judgment or settlement.
*Willful infringement occurs when a party knowingly or recklessly continues conduct that is ultimately found to infringe a patent after becoming aware of the patent, potentially exposing it to enhanced damages of up to three times the amount awarded by the court.
Media Contact: [email protected]
Liquid Rarity Exchange, LLC (d/b/a RarityX.com)
