Investcorp and Securitize Partner to Launch Tokenized Investment Fund
Summary:
Investcorp has announced a partnership with the Strategic Capital Group (ISCG) and Securitize to introduce a tokenized fund, providing investors with exposure to new investment strategies. The fund's tokenization will reduce barriers and open up new opportunities that were previously inaccessible. Tokenization has surged as a hot topic in the crypto industry and is considered a primary factor in institutional investors' adoption of cryptocurrencies and blockchain technology.
Global asset management firm, Investcorp, disclosed a cooperative endeavour with the Strategic Capital Group (ISCG) and asset tokenization specialist company, Securitize through a press release on June 26. The tokenized fund plans to allow accredited investors an access to exchange equity investment strategies of ISCG where investment is made by obtaining a minor stake in the asset management companies, instead of investing in their managed funds.
The CEO of Securitize, Carlos Domingo, acknowledged the inclusive prospects that tokenized investment products present to investors in his statement following the proclamation of the private equity tokenized fund. He emphasized on the reduced barriers that make out-of-reach opportunities accessible to investors by tokenizing alternative possessions. He also stated that these steps highlight their commitment towards unlocking new financial potentials through technological aid.
Cryptocurrency field experts are increasingly discussing real-world asset tokenization, which has emerged as the second highest profiting segment in the crypto economy, superseded only by memecoins. Tokenization projects yielded a 214% return on investments for investors in the first half of 2024.
Tokenization can be applied to a wide spectrum of assets such as government bonds or real estate, which provides improved efficiency and liquidity to investors while accelerating the money flow in the economy. The market for real-world asset tokenization is predicted to reach a staggering volume of $2 trillion in digitized assets by 2030.
A representative instance of asset tokenization application is Tether's recent launch of a gold-backed U.S. dollar stablecoin named Alloy. This symbiotic model associates the hedging strength of the precious metal and the functionality of a fiat-linked token.
Real-world asset tokenization acts as one of the catalysts encouraging institutional investors to adopt cryptocurrencies and blockchain technology. In a recent conversation with Cointelegraph, Kunal Bhasin of KPMG Canada claimed that, although institutional investors express interest in tokenized CRE, they await a mature market offering robust commercial property investment alternatives. The inclusion of individual investors and family offices in high-value commercial real estate investment opportunities customarily reserved for larger investors and entities is also increasingly being observed.
Published At
6/26/2024 8:30:00 PM
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