ParaFi Capital Tokenization Launches $1B Fund On Avalanche
Key points
- ParaFi Capital is tokenizing an interest in one of its venture funds on the Avalanche blockchain via the Securitize platform.
- The tokenized fund opens ParaFi’s venture strategy to a new group of investors, selecting Avalanche for its EVM compatibility, fast transactions, and low fees.
ParaFi Capital tokenization is part of its $1 billion in assets on the Avalanche blockchain, expanding investor access through the real-world asset tokenization platform Securitize.
ParaFi Capital Advances Tokenization on Avalanche Blockchain
ParaFi Capital, a prominent venture capital firm in the crypto space, has taken the step of tokenizing a portion of its $1 billion in assets under management. Partnering with Securitize, ParaFi will use the Avalanche blockchain for the process due to its compatibility with Ethereum and low transaction fees.
The tokenized fund aims to expand ParaFi’s investor base, providing access to new groups beyond traditional institutional investors, including family offices and blockchain founders. By leveraging tokenization, ParaFi seeks to unlock greater liquidity, reduce administrative costs, and provide programmability benefits to its venture investment strategy.
The move reflects ParaFi Capital tokenization fund commitment to not only investing in tokenization but also using the technology directly in its operations.
Read more: New Grayscale Avalanche Trust Launched for AVAX Investors
ParaFi Capital Expands into Tokenization Through Securitize
ParaFi Capital has partnered with Securitize to tokenize a portion of its venture capital fund on the Avalanche blockchain. The venture capital firm, a leading investor in crypto infrastructure, is now using the technology itself. The decision to tokenize will streamline settlement processes and reduce regulatory costs while opening up new opportunities for cross-collateralization and liquidity.
Avalanche was chosen for its transaction speed, low fees, and growing tokenized asset ecosystem. The tokenization project follows a broader trend in finance, as asset managers like Franklin Templeton are also moving products onto public blockchains like Avalanche.
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