Liquid Rarity Exchange LLC

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 today (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 SPAC 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.
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.