Brevan Howard and Hamilton Lane to Tokenize Assets Using Libre Protocol, Predict 5 Trillion Market by 2030
Summary:
Asset management firms Brevan Howard and Hamilton Lane will be the first businesses to tokenize assets using the upcoming Web3 infrastructure provider Libre protocol. Supported by Brevan Howard's WebN and Nomura's Laser Digital, Libre will offer services such as asset tokenization and smart contracts through the Polygon network. By tokenizing their illiquid asset portfolio and fixed-income products, Brevan Howard and Hamilton Lane aim to increase the accessibility, liquidity and fractional ownership of alternative investments, predicting a potential tokenization market value of $5 trillion by 2030.
Asset management firms Brevan Howard and Hamilton Lane are set to be the inaugural organizations to employ the Libre protocol to tokenize assets. This upcoming measure is underpinned by WebN, supported by Brevan Howard, and Laser Digital by Nomura. Libre is poised to be operational in the first trimester of 2024 and promises asset tokenization and smart contracts on the Polygon network. It will endorse collateralized loans and automated balance adjustment of individually managed accounts (IMAs).
On January 10, an announcement highlighted the strategic partnership of both Brevan Howard and Hamilton Lane with Libre. Their aim is to expedite access to alternative investments. "The tokenization process has the power to transform investment management and trading," stated Victor Jung, chief of digital assets at Hamilton Lane. Alternative investments represent financial assets diverging from typical groups like stocks, bonds, or cash, usually demanding greater initial investments and extended holding durations than conventional assets in question. Further, they lack liquidity. Real estate, private equity, private debt, infrastructure, and hedge funds are examples of alternative investments.
By digitizing an asset's rights into a blockchain-based token, the tokenization process can potentially enhance accessibility, liquidity, and fractional ownership of alternative investments. Citi, the global bank, predicts that the tokenization market could be valued at up to $5 trillion by 2030.
Both Brevan Howard, with its specialty in macroeconomic trading strategies, and Hamilton Lane plan to harness the Libre protocol. Brevan Howard intends to tokenize its illiquid asset portfolio, while Hamilton Lane will use the protocol for its fixed-income products. "Tokenizing funds enables us to serve our investors with a novel entry point to our strategies, increasing their options and further enhancing our platform to cater to client needs," commented Natalie Smith, chief of strategy and client partnerships at Brevan Howard. As of July 2023, Brevan Howard's assets under management (AUM) were projected to be within $35 to $40 billion. Meanwhile, Hamilton Lane reported managing or supervising $854 billion in assets as of September.
Decentralized finance expansion in 2024 is likely to be greatly influenced by institutional demand and regulatory compliance for asset tokenization.
Published At
1/10/2024 7:07:24 PM
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