Investcorp, a global asset manager, has announced a partnership between its Strategic Capital Group (ISCG) and Securitize, a specialized firm in asset tokenization, according to a press release on June 26.
The newly tokenized fund will offer qualified investors the opportunity to participate in ISCG’s general partner staking strategy, which involves private equity investment in asset management firms. Instead of investing in the funds managed by these firms, the strategy acquires minority interests directly in the firms themselves.
Carlos Domingo, the CEO of Securitize, commented on the inclusive nature of tokenized investment products and the opportunities they present to individual investors.
Real-world asset tokenization has become a prominent topic in the crypto industry, with its potential profitability ranking second only to memecoins. In the first half of 2024, asset tokenization projects yielded a remarkable 214% return for investors.
Various assets, ranging from government bonds to real estate, can be tokenized, offering investors improved efficiency and liquidity while significantly increasing the speed at which money circulates in the economy. It is projected that by 2030, the market for tokenized real-world assets will expand to a staggering $2 trillion in digitized assets.
Tether recently demonstrated the power of asset tokenization by launching Alloy, a stablecoin backed by gold and pegged to the U.S. dollar. This innovative approach combines the hedging capabilities of precious metals with the functionality of a fiat-pegged token.
Real-world asset tokenization is one of the key factors driving institutional investors to embrace cryptocurrencies and blockchain technology. Kunal Bhasin of KPMG Canada stated in a recent interview with Cointelegraph that institutional investors are likely to adopt tokenized commercial real estate once the market matures and offers more robust options for investment in this sector.
These opportunities also promote inclusivity, enabling individual investors and family offices to participate in high-value commercial real estate investments that were traditionally reserved for larger entities and investors in the market.
In other news, Bitcoin Man, also known as X Hall of Flame, predicts that China will significantly contribute to a bull run in Bitcoin, with the cryptocurrency reaching $1 million by 2028.