ParaFi Capital, a leading alternative asset management and technology firm with over $1 billion in assets under management, has tapped Securitize, a leader in tokenizing real world assets, to tokenize an interest in one of its venture funds on the Avalanche blockchain.

Since inception in 2018, ParaFi has been at the forefront of investing across the digital asset landscape, becoming one of the largest investors in real world asset tokenization projects and infrastructure. This includes the recent strategic investment in Securitize–a leader in tokenization managing over $950 million in investments–alongside BlackRock, Hamilton Lane, and Tradeweb Markets.

“ParaFi has been among the most active investors globally in companies focused on traditional asset tokenization. However, our firm doesn’t solely want to be passive investors in this technology; we want to use it ourselves. That is why we decided to take the initial step of tokenizing a portion of our latest venture fund.” said Ben Forman, Founder and Managing Partner of ParaFi. “Tokenization of private market strategies can unlock streamlined settlement processes, reduce legal and administrative costs, and longer term can unlock a broad range of benefits including liquidity, programmability, and cross-margining.”

Through this tokenized fund, a new group of investors have access to ParaFi’s venture strategy and join the firm’s existing institutional investor base, which includes leading endowments and foundations, fund of funds, family offices and blockchain founders. In the future, the tokenized interests will generally trade on Securitize Markets and investors will generally be able to leverage Securitize Credit’s borrowing and lending capabilities.

With a strong track record of tokenizing funds with BlackRock, Hamilton Lane, KKR, and others across many asset classes, Securitize’s foundational infrastructure transitions traditional assets onto modern blockchain rails.

“We are proud to partner with ParaFi to tokenize a portion of its fund on the Avalanche blockchain,” said Carlos Domingo, CEO and co-founder of Securitize. “It’s becoming increasingly beneficial for asset managers to move their products onto public blockchains and this fund represents another evolution in the Avalanche ecosystem.”

Avalanche blockchain network’s EVM compatibility, network of networks architecture, sub-second transaction finality, low fees, customizability, robust ecosystem of tokenized assets, and consistency have proven compelling for institutions as they advance broader digital asset initiatives.

As the ecosystem of tokenized assets grows on the Avalanche blockchain, the network’s demand and distribution partners gain momentum. In addition to support from the Avalanche Foundation’s Vista program, the ParaFi feeder attracted a wide range of investors.

“Financial markets demand innovation, and recently, we’ve seen significant leaps forward in the evolution of financial assets leveraging blockchain and tokenization as enablers for greater access and utility,” said John Wu, President of Ava Labs. “ParaFi and Securitize continue to innovate within the ecosystem, and I’m thrilled to see the Avalanche platform support ParaFi’s first steps into tokenizing fund interests.”

Source: Securitize