The merger between decentralized finance (DeFi) and traditional assets, has been held back by lack of infrastructure and regulatory standards worldwide, sources recently told Cointelegraph.
"There simply haven’t been good institutional grade systems for these companies to get involved. Obviously, they’re not going to just run their whole system using a regular blockchain wallet and centralized exchanges," said Colin Butler, global head of Institutional Capital at Polygon.
Tokenization is a path to fractionalization, allowing more people to own a portion of an asset that would have to be sold as a whole before under a higher value. Estimates from Big Four firm PwC set global assets under management to reach $145.4 trillion by 2025, a massive market expected to welcome more investors and, thus, improve assets' liquidity through tokenization.
Institutional investors — meaning players managing this capital across the world — are seeking "services that work well with what they’re already doing, that are easy to implement, flexible and upgradeable," noted Butler.
Polygon said it has been working with many of those global players. In January, investment firm Hamilton Lane announced the first of three tokenized funds backed by Polygon blockchain, bringing part of its $824 billion in assets under management on-chain. By tokenizing its flagship Equity Opportunities Fund, Hamilton Lane was able to lower the minimum required investment from an average of $5 million to $20,000.
We are excited to share that a portion of our recently closed Equity Opportunities Fund V is now accessible to qualified investors through a new @Securitize feeder fund tokenized on @0xPolygon. Learn more: https://t.co/ZxfaNJwgBx pic.twitter.com/4SOezI2Ma2
Anoth
Read more on cointelegraph.com