Securitize, a pioneer in the digital asset securities industry, today announced the establishment of a fund on the Avalanche public blockchain that will give its clients tokenized exposure to KKR’s Health Care Strategic Growth Fund II (“HCSG II”). For the first time in the United States, investors can get access to one of KKR’s alternative investment strategies through a tokenized fund (the “Fund”) issued by Securitize.
The relevance of tokenization on Securitize’s growth
The Fund is overseen by Securitize Capital, the company’s division dedicated to digital asset management. It gives investors access to KKR’s health care growth equity investment strategy. Private market investment has long struggled to open its doors to a wider audience.
Tokenization is one solution to the restriction because it allows for technologically-facilitated reductions in required minimum investments as well as enhancements to digital investor onboarding and compliance procedures. Additionally, a licensed alternative trading system provides greater liquidity potential. Therefore, Securitize has got it spot-on with this product.
The implementation of blockchain technology by KKR is also an important development in the ongoing “blockchain bridge” development from traditional paper-based financial goods to their digital counterparts. The Fund provides exposure to KKR’s HCSG II Fund. In particular, it invests in early-stage healthcare businesses in North America and Europe that have developed marketable goods or services and are looking for a partner to help them expand.
Blockchain technology may end up being crucial to the development of private markets in the near future. By providing easier access to assets of institutional quality, this new fund is a significant development in the ongoing effort to expand the availability of private equity investments.
In accordance with the current U.S. regulatory environment, Securitize has developed the first entirely digital, all-in-one platform for issuing, maintaining, and trading digital asset securities. This is crucial to addressing the needs of its 1.2 million+ investors and 3,000 client businesses.