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ParaFi Partners with Securitize to Tokenize Fund on Avalanche, Expanding Investor Reach ParaFi Partners with Securitize to Tokenize Fund on Avalanche, Expanding Investor Reach

$1 Billion Issuance Milestone Paired with Securitize Fund Services

Securitize Inc., a leader in real-world asset (RWA) tokenization, has recorded over $1 billion in on-chain issuances alongside the launch of new fund administration services.  

The Securitize Fund Services is a comprehensive suite of fund administration capabilities designed for the growing digital finance sector.

Securitize Launches Securitize Fund Services

The new Securitize Fund Services targets inefficiencies in traditional fund administration. This includes delayed fund net asset valuations (NAVs), repetitive onboarding processes, and slow security issuance. By leveraging blockchain technology, Securitize aims to streamline these processes.

Specifically, it will digitize onboarding, enabling automated workflows through smart contracts. It will also offer on-demand issuance and redemption of tokenized securities. Securitize Fund Services provides institutional clients with a fully integrated platform for fund management. The service caters to both traditional finance (TradFi) companies and web3-focused institutions.

“We are proud to provide our customers with an all-inclusive, one-stop platform for their investment needs, combining Securitize’s expertise in tokenization, regulated primary and secondary sales of tokenized assets, and transfer agent services with our new fund administration capabilities,” said Carlos Domingo, Securitize’s Co-founder, and CEO.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

The launch of Securitize Fund Services marks a significant advancement in the RWA sector. The platform’s end-to-end solutions improve efficiency, transparency, and accessibility throughout the investment lifecycle. The launch, coinciding with the firm’s $1 billion on-chain issuances, highlights the company’s position at the forefront of asset tokenization.

Of note, Securitize’s recent partnerships, particularly with asset management giants like BlackRock, Hamilton Lane, and KKR, highlight its appeal to major players in the financial sector. With Securitize’s platform, these firms can integrate RWAs into blockchain-based systems, minimizing counterparty risks and offering new capital-raising opportunities.

“As a leader in the evolving tokenization space, Hamilton Lane has prioritized broadening access to the private markets in a more efficient, scalable way. We have invested in and partnered with Securitize in part because they share in that vision. The addition of fund administration services to Securitize’s platform can provide a faster and more seamless experience for investors accessing Hamilton Lane funds in this way,” Victor Jung, Head of Digital Assets at Hamilton Lane, said.

At the same time, Securitize is also expanding its blockchain offerings through a strategic partnership with ParaFi Capital. As BeInCrypto reported, the firm is tokenizing a new fund on the Avalanche blockchain. This collaboration aims to reduce entry barriers for investors and further integrate blockchain technology into mainstream finance.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

Securitize’s collaborations with industry leaders demonstrate the demand for seamless, blockchain-integrated financial services. This supports the growth of tokenization in both traditional and decentralized finance sectors.

Nevertheless, its decision to select the Wormhole Bridge as the interoperability provider for its tokenized assets remains a concerning choice. This is after Wormhole’s $323 million exploit, which raised concerns about its security.

“I find it a little more than odd that Securitize decided, out of all the cross-chain protocols that exist, that the industry’s most provably insecure bridge (of the hacked bridges still alive) was the best suitable solution to secure their tokenized assets.  I can only suspect that this decision has little to do with the technical quality or security track record of Wormhole, but more to do with the financials involved in the deal,” Chainlink community liaison Zach Rynes said recently.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Lockridge Okoth

https://beincrypto.com/securitize-hits-billion-on-chain-milestone/

2024-11-01 13:30:00

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