KKR, one of the world’s largest institutions, is moving towards tokenization on Avalanche by Securitize. This will make a part of its private-equity funds available on the public blockchain. The move comes as a bid to expand individual investors’ access to private investment vehicles. KKR has $471 Billion in assets under management, making it a notable move by such an institution to deploy assets on a blockchain.
Collaboration with Securitize
KKR will be working with Securitize Capital, which will be responsible for handling the onboarding of new investors. Individuals can invest in KKR’s health-care fund through a tokenized feeder fund on the Avalanche blockchain, provided by Securitize.
Typically, exposure to a KKR flagship product at the scale of the Securitize tokenized fund would be impossible because of the costs and complexity of back-office operations and paperwork.
With tokenizing exposure to the fund on Avalanche, Securitize is streamlining the entire process end-to-end. Therefore, marking a major leap forward in making institutional private market strategies accessible to a wider set of participants than ever before.
Those qualified for purchase, generally with at least $15 million in investible assets, who have a digital wallet and sign up with Securitize, can invest in the KKR fund using a tokenized feeder fund. Additionally, after a year of holding the security, the investors can sell to other qualified individuals on a secondary market under the management of a Securitize unit.
As we focus on the future of on-chain finance, real-world assets like this fund must be onboarded. Besides, the onboarding process ensures that the universe of asset classes and risk profiles is available for users.
Avalanche is always uniquely equipped for onboarding the assets and enabling complex use cases requiring high-performance infrastructure. Institutions will always go for speed above any platform or market characteristic. Thus, Avalanche is a perfect platform as it is peerless in speed and regularly finalizes transactions in under one second, even during spikes in on-chain activity. Additionally, there is no limit on the number of Avalanche subnets validators can support.
Such a stance brings us closer to the long-promised vision of institutions coming on the chain.
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