ParaFi Taps Securitize to Tokenize Portion of $1 Billion Fund

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

ParaFi Capital has partnered with Securitize, a real-world asset tokenization platform, to tokenize a portion of its more than $1 billion in assets under management on the Avalanche blockchain.

The firm, known for its substantial investments in the crypto industry, is also a leading investor in projects and infrastructure focused on real-world asset tokenization.

Earlier this year, ParaFi participated in a $47 million funding round for Securitize, led by global asset manager BlackRock.

Ben Forman, founder and managing partner of ParaFi, noted the potential benefits of tokenizing private market strategies, which include streamlined settlement processes and reduced legal and administrative costs.

He also claimed that tokenization offers improved liquidity, programmability, and cross-margining in the long term.

“ParaFi has been among the most active investors globally in companies focused on traditional asset tokenization,” Forman said.

“However, our firm doesn’t solely want to be passive investors in this technology; we want to use it ourselves. That is why we decided to take the initial step of tokenizing a portion of our latest venture fund.”

Tokenization meets private markets