Securitize’s Post

Fund tokenization, which involves converting rights to a fund's assets into digital tokens, is increasingly shaping the future of finance by enhancing liquidity, transparency, and accessibility. This tokenization enables investors to participate in the performance of the fund in a tokenized form. Investments can be made in USD-backed stablecoin (USDC), with custom certificates available for issuing starting from USD 100k. This is an important step towards increasing liquidity in the trade finance sector, allowing us to support more trade growth for the SMEs around the world we work with. #tradefinance #tradeflow #sme #digitization

"BlackRock’s growing confidence in the digital assets market is also highlighted by its backing for Securitize, joining Tradeweb and Hamilton Lane in a $47mm fundraising round for the platform, which uses digital tokens to represent assets." As Will Schmitt and Brooke Masters write today in the Financial Times, BlackRock's long-term bet is to speed up settlement of deals and transfer of their funds, making them more attractive to investors who want access to their money immediately. Highly recommend reading the full article to understand how the world's largest asset manager is tapping into tokenization technology to dive deeper into the digital asset space:

Lazard Ventures into Tokenized Funds with Bitfinex Securities and SkyBridge Invest Traditional finance meets digital innovation as Lazard (NYSE: LAZ), a global financial services leader with $245 billion AUM, partners with Bitfinex Securities and SkyBridge Invest to launch tokenized funds. This initiative, under Kazakhstan’s regulated framework, aims to extend Lazard’s funds to a broader retail audience, making assets like global and emerging market equities more accessible. Tokenization as a Transformative Force "We are a B2B investment firm, and this is a good way for us to service retail investors," noted Matthias Kruse, Managing Director at Lazard, highlighting that tokenization brings efficiency, liquidity, and lower operational costs to asset management. Tokenization is rapidly gaining traction, with assets like bonds, credit, and funds now being placed on blockchain for faster settlement and increased efficiency compared to traditional processes. Competitive Landscape Lazard's venture into tokenized funds places it at the forefront of asset management innovation, joining firms like BlackRock and HSBC already in the tokenization space. While ARK Invest has not yet entered this field, firms embracing tokenization are positioned to leverage enhanced liquidity, streamlined operations, and faster transactions as key advantages. Lazard’s partnership with Bitfinex Securities could establish it as a market leader, showcasing the integration of digital asset solutions within traditional finance. Industry Forecast Tokenization of real-world assets (RWA) is forecasted to become a multi-trillion-dollar market. Global reports from McKinsey, BCG, and 21Shares underline its potential to reshape asset ownership and investing. Lazard’s move exemplifies the strategic shift of traditional firms toward the digital asset economy, unlocking new opportunities for retail investors and pioneering advancements in the financial services industry. #DigitalAssets #Tokenization #Lazard #BitfinexSecurities #SkyBridgeInvest #AssetManagement #Blockchain #FinanceInnovation #RWAMarket #Investment #ARKInvest

INJECTIVE LAUNCHES ‘FIRST EVER’ TOKENIZED INDEX FOR BLACKROCK’S BUIDL FUND: DETAILS… - INJECTIVE reportedly launched the ‘First Ever’ of the BlackRock BUIDL Index. This is the first perpetual index designed to track the supply of BlackRock's $BUIDL Fund. Key Details: - The new BUIDL Index allows for 24/7 exposure to tokenized assets like U.S. treasuries. - Users can interact with the BUIDL Fund through on-chain financial instruments, offering accessibility to institutional-grade assets, per Injective. - The BUIDL Index offers the option to take long or short positions, with leverage available on Injective’s native DEXs, including Helix. - The index tracks the supply changes of BUIDL tokens, reflecting these fluctuations in real-time with a 1-hour TWAP to reduce volatility. - BUIDL Index allows users with as little as $1 to access BlackRock's tokenized fund, previously available only to institutional investors. Image: Injective on X

Interest continues to grow around #tokenisation. Janus Henderson is now testing the waters by taking over the Anemoy fund (an on-chain Treasury product) following BlackRock, Fidelity & Franklin Templeton who already offer tokenised money market or Treasury funds. We've done a lot of work in this space so come and talk to us about tokenisation-in-a-box considering the full op model from risk/tax/regs/processes/tech perspectives. #assetmanagement #innovation Amarjit Singh 💙 Chen Zur Robin Kennedy Arwin Holmes

Well done TradeFlow Capital Management and Obligate! At Conduit Group, we are delighted to add this new and innovative medium to help our clients access TradeFlow Capital Management solid and steady returns, while reducing the SMEs financing gap in commodities trading. In the current political and economic uncertain environment, increasing exposure to an uncorrelated asset class with such a proven stable track record makes sense: be it through a token in your wallet, some fund shares in your life insurance wrapper or a note in your bond portfolio, there is a way of investing into this underlying that fits your specific requirements. Please do reach out to know more! #wealthmanagement #tradefinance #alternativeinvestments #impact

The power of institutions building on-chain products cannot be understated. BlackRock's tokenized liquidity fund BUIDL, investing in short-term treasuries, amassed nearly $500M since launch in March. That's 30% of the total tokenized treasuries market. In comparison, crypto-native firms like Maple Finance which operate an equivalent product since as early as 2022 hold just $18M.

Why do fund administrators now need to gain #onchain capability? The fund servicing industry is at a critical juncture. With the rapid #democratization of alternative investments and the increasing demand from #retail investors, fund administrators face new challenges that traditional inefficient operations simply can’t meet. Major players like Blackstone, KKR, and Carlyle are expanding into retail capital, and #regulatory shifts such as the UK’s Long-Term Asset Funds (#LTAFs) and Europe’s #ELTIF 2.0 are making alternative investments more accessible. Fund administrators must be prepared to handle the increased operational complexity and scale, or risk falling behind. The answer? #Tokenization. Fund administrators can automate processes and standardize data, eliminating manual tasks and data reconciliation to enable scalable operations. What do they need? An onchain operating system that meets their needs at each stage across the full lifecycle of tokenized funds: 🟣 Onboarding: Fund administrators require a streamlined onboarding process with KYC checks and secure payment collection.  🟣 Issuance: Fund administrators need to represent assets onchain in a compliant manner. 🟣 Servicing: Managing onchain funds requires full lifecycle servicing, from compliance to investor relations. 🟣 Secondary Market: Handling secondary market onchain operations is key to increasing liquidity. The image in this post shows the major functions an onchain operating system must provide to meet the needs of fund administrators. 👉 For more details, you can check out the newsletter authored by our Head of Product, Xavi Aznal Prieto, here: https://lnkd.in/eX7hHvJx #Tokenization #FundServicing #OnchainFinance #AlternativeInvestments #RetailCapital #FundAdministration

How will hedge funds cope with the shift to T+1 settlement after May 28 this year? In two words: better technology. The shift to T+1 settlement will serve as a major catalyst for technological innovation. But adoption requires a truly robust technological infrastructure capable of handling increased transaction volumes, minimizing latency, and ensuring data security. Read our latest blog to discover the five areas hedge funds and other asset managers should consider in terms of their technology infrastructure. https://bit.ly/3K0brnP Marshall Saffer Sudhir Segu #hedgefunds #settlementcycle #fintech #trading

#Tokenization of #funds is seen as the 3rd revolution in asset management, following mutual funds and ETFs. According to the latest report by Boston Consulting Group (BCG), Invesco Ltd., and Aptos Labs, mutual fund investors could realize additional annual investment returns of about US$100 billion to US$400 billion! The inefficiency issue: In traditional mutual funds today, the settlement periods are T+2/3 days. It means capital is trapped and investors miss out on potential gains. Here is how tokenization helps to improve their return: 👉 Unlocking Trapped Capital: Investors can access their returns immediately, reinvesting their funds without waiting for traditional settlement processes to complete. This alone could add US $50 Billion annually to investor portfolios. 👉 Slashing Transaction Costs: Through secondary markets, investors can buy and sell tokenized fund shares from each other rather than directly from the fund managers, bypassing the fees charged. It can potentially save investors US $33 Billion. 👉 Boosting Lending Power: Tokenized funds act as streamlined collateral for loans, enabling investors to access liquidity more efficiently and obtain credit more readily. 👉 Profiting from Market Movements: Savvy investors can leverage intraday trading of tokenized funds to capitalize on short-term fluctuations in NAV, potentially generating an additional US $80 Billion to US $400 Billion annually. As this innovative technology gains traction and regulated #onchain #money becomes increasingly prevalent, the potential for tokenized funds to generate significant value for investors and reshape the future of finance is undeniable. Here is the report: https://lnkd.in/dTpAGtGU