SkyBridge Capital Embraces Blockchain Shift

SkyBridge Capital, under the guidance of its founder Anthony Scaramucci, is undergoing a major evolution that involves the transition of two hedge funds worth nearly $300 million into cryptocurrency assets on the Avalanche network. This innovative step will see the Digital Macro Master Fund and Legion Strategies funds transformed into digitally tradable forms through collaboration with the platform Tokeny. By adopting blockchain technology, this strategy seeks to enhance accessibility and transparency for traditional financial assets.

What Role Does Tokeny Play?

Tokeny is at the core of this digital transformation venture. A part of the Apex Group, which manages assets surpassing $3.5 trillion, Tokeny will provide technological solutions required for the tokenization process via the Digital 3.0 platform. This recently acquired platform supports the issuance, management, and transformation of assets into crypto tokens, ensuring a seamless transition.

SkyBridge Capital has selected the ERC-3643 token standard for this task, prioritizing security and regulatory compliance in digitizing financial assets. The primary objective is to offer investors a suite of benefits as these funds migrate to the digital economy.

Blockchain technology enables rapid and transparent transactions of conventional financial products, allowing financial institutions to benefit from faster settlement processes and non-stop access.

Will Other Firms Follow Suit?

Yes, similar initiatives are being explored. VERT Capital plans to move approximately $1 billion in debt and receivables to the XDC network, having launched a tokenized credit platform on the XRP Ledger. Additionally, Securitize is offering digital tokens from funds owned by Hamilton Lane, Apollo, and KKR.

The market for digitalized traditional assets has seen remarkable growth, having doubled to over $26 billion in the last year alone. By 2030, it is expected to surge to a trillion-dollar industry, supported by findings from leading firms like McKinsey, Ripple, and BCG.

Anthony Scaramucci, expressing his excitement, stated:

“We are delighted to transition our funds to the new era of digital and blockchain. We aim to offer new possibilities to our investors in terms of transparency, liquidity, and accessibility by converging traditional finance with smart and efficient blockchain investment solutions.”

The Avalanche network is positioning itself as a frontrunner in hosting these tokenized assets. In Bergen County, New Jersey, plans are underway to digitize $240 billion worth of property deeds on this network, streamlining transactions and enhancing security measures.

Such groundbreaking moves are expected to foster new business models, bridging finance with technology, and provide investors with opportunities to delve into emerging platforms and ecosystems.