Digital asset firm Securities Capital is set to launch its $491 billion asset management firm KKR Healthcare Strategic Growth Fund II (HCSG II) on the Avalanche blockchain.
The news was shared by KKR on September 13, the HCSG II token was described by the head of Securities Capital, Wilfred Daye, as a “great breakthrough” for the access to individual private equity markets.
The token allows investors to own a token representing a share of a $4 billion healthcare-focused fund invested in 23 North American and European-based companies in the pharmaceutical, medical device and life sciences sectors.
In order to purchase HCSG II funds through the Securities Protocol, investors must submit their passports, fill in personal and tax information, and complete a “life proof” for evaluation. Investors are also charged a 0.50% management fee.
Ava Labs founder and CEO Emin Gun Sirer said the HCSG II fund token is a “major milestone” for the blockchain industry in enabling “real-world assets” to move on-chain.
Big news: exposure to major funds @KKR_CoIt is called Avalanche, one of the largest institutions in the world. @keep out. This is a big milestone for blockchain on Wall Street and real-world assets coming on-chain https://t.co/03iQY8OTpl
– Emin Gün Sirer (@el33th4xor) September 13, 2022
KKR claims that the on-chain real-world asset token will also “lower minimum investment levels, improve onboarding and compliance protocols for digital investors, and increase liquidity through regulated alternative trading systems.”
Related: Token, explained.
The blockchain research center at Boston Consulting Group (BCG) and Raiffeisen Bank International is exploring the potential of tokenization to hold large amounts of global assets.
BCG predicts that $16.1 trillion of illiquid assets will be tokenized by 2030, while Raiffeisen Bank International’s Center for Blockchain Research predicted last year that most securities will be tokenized by 2030.
Securitize Capital will launch a unified securitization protocol on the Avalanche blockchain in December 2020 and is focused on “reinvigorating private capital markets by providing trusted end-to-end security token solutions.”