Securitize and ParaFi Capital Partner to Tokenize Real-World Assets on Avalanche
An interest in one of ParaFi Capital’s venture funds will be tokenized on the Avalanche blockchain by Securitize, a company that specializes in tokenizing real-world assets. Since its founding in 2018, ParaFi has led the way in investing in a variety of digital assets, growing to rank among the biggest backers of infrastructure and tokenization initiatives involving real-world assets. This includes the recent strategic investment alongside BlackRock, Hamilton Lane, and Tradeweb Markets in Securitize, a major tokenization participant handling over $950 million in assets.
Avalanche Blockchain Powers ParaFi’s Tokenized Fund for Institutional and New Investors
According to Ben Forman, Managing Partner and Founder of ParaFi, tokenization of private securities can result in cost savings and more efficient procedures. A new class of investors gains access to ParaFi’s venture strategy through this tokenized fund, joining the company’s current institutional investor base that comprises prominent endowments and foundations, funds of funds, family offices, and blockchain pioneers. Investors will typically be able to take advantage of Securitize Credit’s lending and borrowing capabilities in the future when the tokenized interests trade on Securitize Markets.
The CEO and co-founder of Securitize, Carlos Domingo, stated that asset managers should consider moving their products to public blockchains. Institutions advancing larger digital asset efforts have found the Avalanche Blockchain Network’s EVM compatibility, network design, low fees, sub-second transaction finality, customizability, strong ecosystem of tokenized assets, and consistency to be intriguing. Apart from the backing provided by the Avalanche Foundation’s Vista initiative, a diverse group of investors expressed interest in the ParaFi feeder.
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