TLDR
- SkyBridge plans to tokenize 10% of its assets, valued at $300 million, on Avalanche blockchain.
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The strategy involves two funds: one focusing on crypto assets and another on venture and crypto investments.
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The tokenization project aims to reduce transaction costs and eliminate intermediaries in financial transactions.
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SkyBridge partners with Tokeny to bring its assets to Avalanche, marking a shift toward decentralized finance solutions.
SkyBridge Capital, founded by Anthony Scaramucci, has revealed plans to tokenize $300 million in assets. This move signals the growing trend of financial firms embracing blockchain technology to manage and trade assets more efficiently. SkyBridge will tokenize assets from two different funds: one focused on cryptocurrency investments and the other investing in venture and crypto funds.
This decision is a strategic effort to leverage blockchain’s ability to reduce transaction fees, increase transparency, and facilitate quicker settlements. The firm is turning to the Avalanche blockchain, known for its scalability and use in real-world asset tokenization, to launch the tokenized assets.
Avalanche Blockchain: A Key Player in Real-World Tokenization
The Avalanche blockchain, a competitor to Ethereum and Solana, has been gaining traction for its focus on real-world asset tokenization. By using Avalanche’s infrastructure, SkyBridge aims to streamline asset management, making it easier to trade and verify ownership digitally.
John Wu, President of Ava Labs, the company behind Avalanche, expressed that the goal is to integrate traditional finance into the blockchain world.
“We want to bring activity on-chain from the traditional finance world and demonstrate the cost-saving benefits of this technology,” said Wu.
SkyBridge’s use of Avalanche is a part of a broader trend where financial institutions are moving toward blockchain solutions. Financial heavyweights like BlackRock and VanEck have also begun tokenizing traditional assets such as money-market funds on blockchain networks.
Reducing Transaction Costs Through Tokenization
One of the primary advantages of tokenizing assets is the reduction in transaction costs. Traditionally, asset transactions involve multiple intermediaries, each charging fees and extending the time it takes to settle transactions. By issuing tokenized versions of these assets on the Avalanche blockchain, SkyBridge seeks to bypass these intermediaries, offering a more efficient and cost-effective solution.
This tokenization approach also promises better liquidity and transparency, as digital assets can be traded 24/7 on blockchain platforms. Tokenized assets are secured by smart contracts, which automate processes and ensure faster settlements. By eliminating middlemen, SkyBridge intends to provide its investors with greater value.
SkyBridge is partnering with Tokeny, a company specializing in tokenization, to bring these assets onto the Avalanche blockchain. Tokeny will help facilitate the process of creating digital tokens that represent real-world assets, ensuring that they meet regulatory standards.
