Digital asset company Securifying Capital is the $491 billion tokenization executioner for asset management firm KKR’s Health Care Strategic Growth Fund II (HCSG II) on the Avalanche blockchain.
This news was shared by KKR on Tuesday, the tokenization of HCSG II was described by Securities Division Director Wilfred Daye as a “significant breakthrough” for access to private capital markets.
Tokenization allows investors to own a token that represents part of a $4 billion healthcare centralized fund. The fund has invested in 23 companies based in North America and Europe, with experience in pharmaceuticals, medical devices, and life sciences.
To buy HCSG II Fund on Securifying protocol, investors need to submit a passport, fill in personal information, pay taxes and validate information to be considered. Investors are also subject to a 0.50% management fee.
Founder and CEO of Ava Labs, Emin Gün Sirer said the tokenization of the HCSG II Foundation is an “important milestone” for the blockchain industry in allowing “real-world assets” to participate in the 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 the tokenization of real-life assets on-chain also “reduces minimum investment levels, improving digital investor protocols and compliance, and increasing liquidity potential through a regulated alternative trading system”.
The tokenization to own a large portion of global assets has also been acknowledged by the Boston Advisory Group (BCG) and Raiffeisen International’s Blockchain Research Center.
BCG predicts that $16.1 trillion of illiquid assets will be tokenized by 2030. Raiffeisen International Bank’s Blockchain Research Center predicted last year that most securities will be tokenized by 2030.
Securifying Capital operates the Securifying protocol, which was integrated into the Avalanche blockchain in December 2020 and focuses on “reinventing the private capital market by providing reliable end-to-end security token solutions.”