NEW YORK, NY – The Avalanche blockchain has become the platform of choice for SkyBridge Capital's groundbreaking initiative to tokenize $300 million of its hedge funds, a move poised to democratize access to traditionally exclusive alternative investments. This development directly supports the sentiment expressed in a recent tweet by Avalanche🔺, which stated, > "The average person now can access hedge fund returns." This tokenization represents a significant step in bridging traditional finance with decentralized technology.
SkyBridge Capital, a global investment firm, is tokenizing two of its flagship funds, the Digital Macro Master Fund Ltd and Legion Strategies Ltd. This strategic decision leverages the ERC-3643 token standard, which embeds regulatory compliance such as Know Your Customer (KYC) and Anti-Money Laundering (AML) checks directly into the digital assets. The project, facilitated by tokenization platform Tokeny and financial services provider Apex Group, aims to enhance liquidity, transparency, and operational efficiency for investors.
Avalanche was selected for its robust institutional-grade infrastructure, characterized by high transaction throughput, near-instant finality, and compatibility with the Ethereum Virtual Machine (EVM). These features make the Avalanche network suitable for large-scale tokenization projects, ensuring seamless integration with existing financial systems while maintaining security and speed. This capability is crucial for managing complex financial instruments like hedge funds on-chain.
The tokenization of real-world assets (RWAs) is a rapidly expanding market, projected to reach $1 trillion by 2030. SkyBridge's $300 million initiative adds a major institutional name to this growing ecosystem, signaling increasing confidence in blockchain's ability to modernize asset management. This trend allows for fractional ownership and 24/7 trading of assets that were previously illiquid and accessible only to institutional or ultra-high-net-worth investors.
Beyond SkyBridge, other significant players like KKR, through Securitize, have also launched tokenized exposure to their funds on Avalanche, further validating the platform's role in bringing private market strategies to a broader investor base. Republic, a platform democratizing access to private investments, has also chosen Avalanche for its profit-sharing digital asset, the Republic Note, reinforcing the network's appeal for innovative financial products. These initiatives underscore a broader industry movement towards making alternative investments more accessible through blockchain technology, potentially reshaping the landscape of global finance.