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27/06/24
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Investcorp’s ISCG is Coming Up With a Private Equity Tokenized Fund
Investcorp’s Strategic Capital Group (ISCG) has partnered with Securitize to come up with a private equity tokenized fund. Investcorp is an international asset manager while Securitize specializes in asset tokenization.
According to a press release on June 26, the private equity tokenized fund will expose qualified investors to ISCG’s general partner staking strategy. The staking strategy is a method of private equity investment that engages in direct investment in asset management companies through the acquisition of minority interests in such companies, instead of investing in the underlying funds managed by those companies.
Securitize CEO Carlos Domingo highlighted the opportunities tokenized investment products offer investors:
“By tokenizing alternative assets, we are breaking down barriers and allowing individual investors to participate in opportunities that were previously out of reach. This partnership underscores our commitment to leveraging technology to unlock new financial possibilities.”
One of the leading sectors in the crypto industry is real-world asset tokenization, as institutions are now venturing into it. According to a recent report, the sector has been the second most profitable sector within the industry, after memecoins. In H1 2024, projects across the asset tokenization sector gave investors a return of 214 percent.
It is possible to tokenize government bonds, real estate and others to provide enhanced efficiency and liquidity to investors while ensuring an exponential increase in the velocity of money in the economy.
McKinsey & Company’s analysts revealed that tokenized financial assets are on the way to attaining a market size of about $2 trillion by 2030, despite having a cold start. “In a bullish scenario, this value could double to around $4 trillion,” said the analysts, who expect cash and deposits, bonds and exchange-traded notes (ETNs), mutual funds and exchange-traded funds (ETFs), loans and securitization to reach “meaningful adoption” first.
Recently, USDT issuer Tether launched a gold-backed USD stablecoin called Alloy, displaying a solid use case for asset tokenization.
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