ParaFi Tokenizes Fund on Securitize Platform with Avalanche

Avalanche

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’s EVM compatibility, the network of networks architecture, sub-second transaction finality, low fees, customizability, a 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 Avalanche, 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."

To learn more about ParaFi, visit here.

Want to learn more about the tokenized ecosystem on Avalanche? Join the team at Avalanche Summit LATAM, taking place in Buenos Aires, Argentina, from October 16 to 18, 2024, to witness the future of Avalanche and experience firsthand the innovations that will drive the next wave of blockchain development. Find out more here.

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About Avalanche Blockchain Network

Avalanche is a high-performance blockchain platform designed for builders who need to scale. Engineered with a revolutionary three-part Layer 1 (L1) architecture, Avalanche is anchored by its Avalanche Consensus Mechanism, ensuring near-instant finality for transactions. The platform also features an open-source Layer 0 (L0) framework, enabling the seamless creation of interoperable Layer 1 blockchains with high throughput on both public and private networks.

Supported by a global community of developers and validators, Avalanche offers a fast, low-cost environment for building the next generation of decentralized applications (dApps). With its unique blend of speed, flexibility, and scalability, Avalanche is the preferred choice for innovators pushing the boundaries of blockchain technology.

About Securitize

Securitize, the leader in tokenizing real world assets, is driving the compliant digitization of financial assets through next generation blockchain technology. Securitize, or through its subsidiaries, is a registered broker dealer (member SIPC) and operates a primary marketplace, an alternative trading system as well as a top 10 transfer agent and has an exempt reporting adviser. Learn more at http://www.securitize.io.

About ParaFi

ParaFi Capital LP (“ParaFi” or the “Firm”) is an alternative asset management firm that operates hedge fund and venture capital strategies focused on the digital asset ecosystem. Founded in 2018, ParaFi was among the earliest investors in the blockchain industry and has evolved into a trusted partner by leading institutions globally. ParaFi’s investment and technology team pursues idiosyncratic opportunities across venture, liquid, and quantitative strategies. As a firm, ParaFi is committed to a culture of rigorous research, technical development, and institutional underwriting to enable exceptional results for our partners and portfolio companies.

For more information, please visit https://parafi.com/.

Securitize Disclosures

Securities are offered through Securitize Markets, LLC, (“Securitize Markets”) a registered broker-dealer and member FINRA/SIPC. Securitize Markets, LLC, and Securitize Capital, an Exempt Reporting Adviser, are not involved in Real-World Asset (RWA) tokenization, a service provided by Securitize.

Assets such as digital assets or tokens using blockchain, are speculative, involve a high degree of risk, are generally illiquid, may have no value, have limited regulatory certainty, are subject to potential market manipulation risks and may expose investors to loss of principal.

Securitize, Inc. (Securitize) is a Delaware corporation. Securitize is a technology provider which, together with its affiliates, maintains an end-to-end web-based platform used by issuers for issuing securities, specifically including digital asset securities. Securitize is not a registered broker-dealer.

Securitize, LLC is a transfer agent registered with the U.S. Securities and Exchange Commission.

Securitize Markets also operates Securitize Markets ATS, an alternative trading system.

Securitize Capital, LLC is an exempt reporting adviser filed with the State of Florida.

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