Lazard Joins Asset Tokenization Trend, Partners with Bitfinex Securities and SkyBridge Invest to Create Tokenized Funds
In a significant development, Lazard, a 175-year-old global financial services and asset management company, has announced its entry into the asset tokenization trend. The company is partnering with Bitfinex Securities and SkyBridge Invest to create tokenized funds that will be available to retail users.
The tokenized funds will be set up and issued under Kazakhstan’s financial services law, under the regulatory oversight of Astana Financial Services Authority (AFSA). Bitfinex Securities is responsible for the tokenization process, while SkyBridge will act as broker and manager of the tokenized fund. The products will be available to retail users, but with certain geographic limitations, and can be purchased using Tether’s stablecoin (USDT).
The partnership was announced on Friday at a side event during the Plan B conference in Lugano, Switzerland. Representatives from Lazard, Bitfinex Securities, and SkyBridge signed a memorandum of understanding (MoU) to create the tokenized funds.
According to Matthias Kruse, managing director at Lazard, the company is looking to offer its existing funds focused on global equities and emerging market equities to retail investors through this new initiative. "We are a B2B investment firm, and this is a good way for us to service retail investors," he said.
Kruse also highlighted the benefits of tokenization, which include improved efficiency, increased liquidity, and lower operational costs. Tokenization of real-world assets (RWA) is a rapidly growing sector that involves placing assets such as bonds, credit, and funds on blockchain rails. This process allows for faster settlements and increased efficiency compared to traditional financial plumbing.
The tokenization trend has gained momentum this year, with global banks and asset managers such as BlackRock and HSBC offering tokenized products. According to market research firms McKinsey, BCG, 21Shares, and Bernstein, the RWA market is poised to become a multi-trillion dollar market over the coming years.
Lazard’s asset management business has $245 billion of assets under management (AUM). SkyBridge Invest is a Kazakhstan-based investment services firm, while Bitfinex Securities is a licensed trading venue in El Salvador and Kazakhstan. Bitfinex Securities is also the tokenization platform arm of crypto trading venue Bitfinex.
The Benefits of Tokenization
Tokenization offers several benefits to investors and financial institutions. It allows for increased efficiency, as transactions can be settled faster and with greater accuracy. Tokenization also increases liquidity, making it easier for investors to buy and sell assets. Additionally, tokenization helps reduce operational costs by eliminating the need for intermediaries.
The Future of Asset Management
The asset management industry is undergoing a significant transformation with the adoption of tokenization. Traditional financial players are jumping on the trend, recognizing the benefits of increased efficiency, liquidity, and reduced costs. As the RWA market continues to grow, it is likely that we will see more innovative applications of tokenization in the future.
The Role of Lazard
Lazard’s entry into the asset tokenization trend marks a significant step forward for the company. By partnering with Bitfinex Securities and SkyBridge Invest, Lazard is able to offer its existing funds to retail investors through a new and innovative platform. This partnership demonstrates Lazard’s commitment to staying ahead of the curve in the rapidly evolving financial services industry.
The Impact on Investors
The introduction of tokenized funds will have a significant impact on investors. Retail users will now have access to a range of investment products that were previously only available to professional investors and institutions. This increased accessibility is likely to drive growth in the asset management industry, as more investors take advantage of the benefits offered by tokenization.
Conclusion
Lazard’s partnership with Bitfinex Securities and SkyBridge Invest marks an important milestone in the adoption of asset tokenization. The introduction of tokenized funds will increase efficiency, liquidity, and reduce operational costs for financial institutions and investors alike. As the RWA market continues to grow, it is likely that we will see more innovative applications of tokenization in the future.