Investcorp announces real-world asset tokenization fund

Investcorp, a global asset management firm, has announced a new asset tokenization fund with Securitize, a firm that specializes in tokenization.
Investcorp, a global asset management firm, has announced a new asset tokenization fund with Securitize, a firm that specializes in tokenization.

Investcorp, a global asset manager, announced a partnership between its Strategic Capital Group (ISCG) and Securitize, a firm specializing in asset tokenization, in a June 26 press release.

The tokenized fund will provide qualified investors with exposure to ISCG’s general partner staking strategy, a method of private equity investment that invests in asset management firms directly by acquiring minority interests in those firms rather than investing in the underlying funds those firms manage.

Following the announcement of the private equity tokenized fund, Securitize CEO Carlos Domingo remarked on the inclusive opportunities tokenized investment products provide to individual investors:

“By tokenizing alternative assets, we are breaking down barriers and allowing individual investors to participate in opportunities that were previously out of reach. This partnership underscores our commitment to leveraging technology to unlock new financial possibilities.”

Real-world asset tokenization: the final frontier?

Real-world asset tokenization has become the talk of the town in the crypto industry, with real-world asset tokenization claiming the second most profitable sector of the crypto economy, right behind memecoins. In the first half of 2024, asset tokenization projects delivered a 214% return for investors.

Related: Why tokenized real-world assets are soaring

Everything from government bonds to real estate can be tokenized, providing enhanced efficiency and liquidity to investors while exponentially increasing the velocity of money in the economy. By 2030, the real-world asset tokenization market is projected to swell to $2 trillion in digitized assets.

An estimated breakdown of what the tokenized asset market may look like in 2030. Source: McKinsey & Company

Tether recently showcased a powerful use case for asset tokenization by launching Alloy, a gold-backed U.S. dollar stablecoin. This hybrid approach combines the hedging power of the precious metal with the functionality of a fiat-pegged token.

Driving institutions to crypto

Real-world asset tokenization is one of the factors driving institutional investors to embrace cryptocurrencies and blockchain technology.

In a recent interview with Cointelegraph, Kunal Bhasin of KPMG Canada said that institutional investors will embrace tokenized commercial real estate but are currently waiting for the market to mature and offer more robust options for commercial property investment.

These opportunities can also be more inclusive, allowing individual investors or family offices to participate in high-value commercial real estate investment opportunities traditionally available to larger entities and investors in the market.

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