ParaFi Capital, an alternative asset management and technology firm with over $1 billion in assets under management, has tapped Securitize, a firm focused on tokenizing real-world assets, to tokenize an interest in one of its venture funds on the Avalanche blockchain.
Since inception in 2018, ParaFi has been “at the forefront of investing across the digital asset landscape, becoming one of the largest investors in real world asset tokenization projects and infrastructure.”
This includes the recent strategic investment in Securitize–a key player focused on tokenization managing over $950 million in investments–”alongside BlackRock, Hamilton Lane, and Tradeweb Markets.”
Ben Forman, Founder and Managing Partner of ParaFi said that tokenization of private securities can provide streamlined processes while reducing costs.
Through this tokenized fund, a new group of investors have “access to ParaFi’s venture strategy and join the firm’s existing institutional investor base, which includes leading endowments and foundations, fund of funds, family offices and blockchain founders.”
In the future, the tokenized interests will generally trade “on Securitize Markets and investors will generally be able to leverage Securitize Credit’s borrowing and lending capabilities.”
With a strong track record of tokenizing funds with BlackRock, Hamilton Lane, KKR, and others across many asset classes, Securitize’s foundational infrastructure “transitions traditional assets onto modern blockchain rails.”
Carlos Domingo, CEO and co-founder of Securitize, noted that is beneficial for asset managers to move their products onto public blockchains.
Avalanche blockchain network’s EVM compatibility, “network of networks architecture, sub-second transaction finality, low fees, customizability, robust ecosystem of tokenized assets, and consistency have proven compelling for institutions as they advance broader digital asset initiatives.”
As the ecosystem of tokenized assets grows on the Avalanche blockchain, the network’s demand “and distribution partners gain momentum.”
In addition to support from the Avalanche Foundation’s Vista program, “the ParaFi feeder attracted a wide range of investors.”
