Cryptocurrencies, including blockchains like Avalanche, have done well in recent years and are attracting interest on a global scale. It’s impossible to predict with certainty what will happen to the cryptocurrency industry in 2023 and beyond, though. The significant barrier to its widespread adoption may be the extreme volatility and abrupt price fluctuations. Due to the rapid fluctuations in cryptocurrency pricing, you may instantly become a millionaire or lose all of your money.
Another example of how volatile the current crypto market is comes from the latest crypto market crash. Nearly all cryptocurrencies had a 50% value decline, however, not everyone is certain that the crypto collapse will be over by 2022. Cryptocurrencies in the pre-sale stage appear to be the ideal investment during this bad market. Crypto aficionados have never given up on the crypto-verse despite such frivolity. Securitize, the top company in the field of digital assets is one of these benevolent followers.
KKR to be tokenized on Avalanche blockchain
The $491 billion Health Care Strategic Growth Fund II (HCSG II) of asset management business KKR will be tokenized on the Avalanche blockchain by digital asset company Securitize Capital. On September 13, KKR announced the information. The head of Securitize Capital, Wilfred Daye, called the tokenization of HCSG II a “significant breakthrough” for private equity market access.
A $4 billion healthcare-focused fund that invests in 23 North American and European businesses involved in the pharmaceuticals, medical device, and life sciences industries can now be owned by investors thanks to tokenization. Each token represents a part of the fund.
Investors must submit their passports, complete personal and tax information forms, and successfully complete a “liveness check” in order to invest in the HCSG II Fund on the Securitize protocol. Additionally, investors must pay a management charge of 0.50 percent.
The tokenization of the HCSG II Fund, according to Ava Labs’ founder and CEO Emin Gün Sirer, represents a “major milestone” for the blockchain sector by allowing “real world assets” to migrate on-chain.
On-chain tokenization of physical assets “reduces investment minimums, enhances digital investor onboarding and compliance standards, and raises possibilities for liquidity through a regulated alternative trading system,” according to KKR.
The Blockchain Research Hub of the Boston Consultant Group (BCG) and Raiffeisen Bank International has also highlighted the potential for tokenization to seize a significant portion of global assets.
While Raiffeisen Bank International’s Blockchain Research Hub estimated that the majority of securities will be tokenized by 2030, BCG predicted that $16.1 trillion in illiquid assets will be tokenized by that time.
The Securitize protocol is run by Securitize Capital and aims to “reinvent private capital markets by delivering trustworthy end-to-end security token solutions.” It was integrated onto the Avalanche blockchain in December 2020.