Investcorp Launches Tokenized Real-World Asset Fund
Investcorp, a global asset manager, has announced a partnership between its Strategic Capital Group (ISCG) and Securitize, a firm specializing in asset tokenization. This collaboration aims to create a tokenized fund, offering new investment opportunities.
Fund Details and Strategy
The tokenized fund will give qualified investors access to ISCG’s general partner staking strategy. This strategy involves private equity investments that acquire minority interests in asset management firms, rather than investing directly in the firms’ underlying funds. ISCG currently manages $1.5 billion in assets and will oversee these collaborative deals.
Inclusivity in Investment
Securitize CEO Carlos Domingo highlighted the inclusive nature of tokenized investment products, stating that they enable individual investors to participate in opportunities that were previously inaccessible. By leveraging technology, these tokenized assets break down traditional investment barriers.
The Rise of Real-World Asset Tokenization
Tokenization of real-world assets is becoming increasingly significant in the crypto industry, emerging as the second most profitable sector behind memecoins. In the first half of 2024, asset tokenization projects delivered a 214% return for investors. This process enhances efficiency and liquidity, allowing a broader range of investors to participate.
Market Projections
By 2030, the real-world asset tokenization market is expected to grow to $2 trillion in digitized assets. This market includes everything from government bonds to real estate, exponentially increasing the velocity of money in the economy.
Institutional Interest
Real-world asset tokenization is attracting institutional investors to cryptocurrencies and blockchain technology. Kunal Bhasin of KPMG Canada noted that while institutional investors are interested in tokenized commercial real estate, they are waiting for the market to mature and provide more robust investment options.
Broadening Investment Opportunities
Tokenization allows smaller investors, including individuals and family offices, to participate in high-value commercial real estate investments traditionally reserved for larger entities. This inclusivity can democratize access to significant investment opportunities.
By launching this tokenized fund, Investcorp and Securitize are at the forefront of a movement that is reshaping the investment landscape, making it more accessible and efficient for a wider range of investors.
