Avalanche's AVAX Token Shows Stability as $130 Million Token Unlock Approaches
The $491 billion health care fund managed by KKR was tokenized on Avalanche
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On the Avalanche blockchain, digital asset company Securitize Capital is going to tokenize KKR's $491 billion Health Care Strategic Growth Fund II (HCSG II).
The news was announced by KKR on September 13. The head of Securitize Capital, Wilfred Daye, called the tokenization of HCSG II a "significant breakthrough" for people to get access to private equity markets.
With tokenization, investors can own a token that represents a share of the $4 billion healthcare-focused fund that invests in 23 North American and European companies in the pharmaceuticals, medical devices, and life sciences sectors.
Investors need to show their passport, fill out personal and tax information, and do a "liveness check" before they can buy into the HCSG II Fund on the Securitize protocol. Investors also have to pay a management fee of 0.50%.
Emin Gün Sirer, founder and CEO of Ava Labs, said that the tokenization of the HCSG II Fund was a "huge milestone" for the blockchain industry because it made it possible for "real world assets" to move on-chain:
Massive news: exposure to a flagship fund of @KKR_Co, one of the largest institutions in the world, is being tokenized on Avalanche by @Securitize. This is a huge milestone for blockchain by Wall Street and real world assets coming on-chain https://t.co/03iQY8OTpl
— Emin Gün Sirer🔺 (@el33th4xor) September 13, 2022
KKR said that on-chain tokenization of real-world assets also "lowers investment minimums, improves digital investor onboarding and compliance protocols, and increases the potential for liquidity through a regulated alternative trading system."
Boston Consultant Group (BCG) and Raiffeisen Bank International's Blockchain Research Hub both agree that tokenization has the potential to take over a big chunk of the world's assets.
BCG said that by 2030, $16.1 trillion of assets that are hard to sell will be turned into tokens. Last year, the Blockchain Research Hub at Raiffeisen Bank International said that by 2030, most securities will be turned into tokens.
Securitize Capital runs the Securitize protocol, which was added to the Avalanche blockchain in December 2020. Its goal is to "reinvent private capital markets by delivering trusted end-to-end security token solutions."
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