TLDR:
- ParaFi Capital has tokenized an interest in one of its venture funds on the Avalanche blockchain using Securitize.
- This move aims to streamline settlement processes, reduce costs, and unlock benefits like liquidity and programmability.
ParaFi Capital, a leading alternative asset management and technology firm with over $1 billion in assets under management, has partnered with Securitize to tokenize an interest in one of its venture funds on the Avalanche blockchain. This initiative, spearheaded by Ben Forman, Founder, and Managing Partner of ParaFi, aims to leverage tokenization to unlock benefits such as streamlined settlement processes, reduced legal and administrative costs, and potentially increased liquidity and programmability in the future.
The tokenized fund will provide a new group of investors access to ParaFi’s venture strategy, joining the firm’s existing institutional investor base. Moreover, with the tokenized interests set to trade on Securitize Markets and the ability to utilize Securitize Credit’s borrowing and lending capabilities, the venture fund is expected to tap into new opportunities within the digital asset landscape.
Securitize’s partnership with ParaFi adds to its track record of tokenizing funds with industry giants like BlackRock and KKR, showcasing its expertise in transitioning traditional assets onto blockchain networks. By choosing the Avalanche blockchain for this venture, ParaFi aligns with the network’s EVM compatibility, sub-second transaction finality, low fees, and robust ecosystem of tokenized assets, providing a compelling platform for advancing digital asset initiatives.
As the ecosystem of tokenized assets grows on the Avalanche blockchain, supported by the Vista program of the Avalanche Foundation, ParaFi’s move to tokenize its fund interests represents an innovative step towards greater access and utility in financial markets. This initiative underscores the evolving landscape of asset management and tokenization, reflecting a broader trend of leveraging blockchain technology for financial products and services.
