Shalini Nagarajan

Blockchain is rapidly becoming a game changer for financial institutions as an increasing number of legacy firms are sinking their teeth into digital assets.



Tokenization, the process of imbuing ownership and other rights onto a blockchain-powered asset, is happening fast across several blockchain ecosystems. So far in 2023, more than five corporations are utilizing the process to expand efficiencies of various transactions.&nbsp;



Why are they doing this? The current traditional model for buying, selling and trading company shares is somewhat archaic, according to Bob Ras, co-founder of XRP protocol Sologenic.&nbsp;



Legacy methods involve restrictions that preclude trading of assets: limited market hours and slow settlement times. And the cost of continuing to rely on these traditional rails can become excessive, Ras said.



“Imagine creating a digital representation of Tesla or Microsoft stock – tokenizing them – and enabling them to be traded 24/7 on-chain while even allowing investors to trade a fraction of the tokenized stock,” Ras told Blockworks.&nbsp;



“Moreover, the costs would be a fraction of what they are now because, instead of relying on the whims of trusted third parties, you have an underlying blockchain that can immediately foster audibility and transparency.”



He forecasts that the value of tokenized assets could grow to be in the trillions of dollars over the following decades.



Here are some names that recently announced asset tokenization projects:



<ul class="wp-block-list">
<li>Goldman Sachs launches GS DAP</li>
</ul>



In January, Goldman Sachs <a href="https://www.businesswire.com/news/home/20230110005308/en/Goldman-Sachs%E2%80%99-Tokenization-Platform-GS-DAP%E2%84%A2-Leveraging-Daml-Goes-Live" target="_blank" rel="noreferrer noopener">announced</a> its Digital Asset Platform (DAP) went live. The platform is built using a private (permissioned) blockchain stack known as Canton, built by Digital Asset. 



Goldman Sachs will use it to enable issuance, registration, settlement and custody of digital assets. The European Investment Bank (EIB) was the first institution to collaborate with the platform for its first digital bond.&nbsp;



The EIB has already issued its second euro-denominated digital bond on a private blockchain in collaboration with Goldman Sachs.



<ul class="wp-block-list">
<li>Hamilton Lane tokenizes investment products in the US</li>
</ul>



Global investment manager Hamilton Lane announced that some products would be <a href="https://securitize.io/press-releases/hamilton-lane-fund-securitize-polygon" target="_blank" rel="noreferrer noopener">tokenized</a> via the Polygon blockchain. Through a partnership with digital asset securities firm Securitize, Hamilton Lane’s flagship direct equity fund will be available to certain US investors through new tokenized feeder funds, providing exposure to direct equities, private credit and secondary transactions. 



These will be managed by Securitize’s digital asset management arm, Securities Capital. Minimum investment is set at $20,000.



<ul class="wp-block-list">
<li>Hong Kong issues tokenized green bond</li>
</ul>



Hong Kong’s government said in February it had successfully issued its first tokenized green bond worth some $100 million under its Green Bond programme. Green bonds are meant to finance environment-friendly or climate-focused projects.



The Central Moneymarkets Unit used Goldman Sachs’ tokenisation protocol GS DAP for the issuance, and the bond was underwritten by four banks priced at a 4.05% yield.



<ul class="wp-block-list">
<li>Siemens issues €60M digital bond on Polygon</li>
</ul>



German manufacturing giant Seimens <a href="https://blockworks.co/news/german-conglomerate-siemens-issues-e60m-digital-bond-on-polygon">issued</a> its first digital bond on Polygon, which has a one-year maturity. Although the bond was issued on-chain, proceeds from investors were collected via traditional banking channels. Siemens spotlighted its efforts, saying the move away from paper toward blockchain would make transactions faster and more efficient.



<ul class="wp-block-list">
<li>Swarm launches fully-backed asset tokens on Polygon</li>
</ul>



DeFi infrastructure firm Swarm Markets launched tradable, DeFi-compatible stocks and bonds on Polygon this month. These tokenized securities would bring Apple and Tesla stocks, and two US Treasury bond ETFs to DeFi, however they won’t be available to US investors.&nbsp;



There is no minimum investment and the products are marketed to both retail and institutional investors. More stocks and other assets are expected to be added to the offering.



The tokenization of assets is still underappreciated by many market observers, as they might be focused primarily on the tokens themselves, according to Daniela Barbosa, executive director of Hyperledger Foundation.



“But tokenizing a wide variety of assets – from equities and index funds to real estate and carbon credits – offers huge potential in terms of not only enhancing transparency, auditability and efficiency, but also access to people who otherwise might not be able to tap into traditional markets,” Barbosa told Blockworks.



“Zooming out, if done at scale, these kinds of transactions are poised to make markets far more efficient.”



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Asset Tokenization Is Shaping Up To Be Crypto’s Theme of the Year

Ben Strack

<div id="highlights-block_633d87ebfea2e" class="highlights">
 <ul>
 <li>Hamilton Lane funds to be available on a yet-to-be-determined “reputable” blockchain, spokesperson says</li>
 <li>Securitize revealed tokenized version of a KKR health care fund on the Avalanche blockchain last month</li>
 </ul>
 
</div>



Private markets investment firm Hamilton Lane is making three of its funds available via tokenized feeder funds as it expands access to the vehicles beyond just institutions.&nbsp;



The firm, which managed or supervised $832 billion in assets as of June 30, has partnered with digital asset securities firm Securitize to tokenize funds offering exposure to equities, private credit and secondary transactions.&nbsp;



Securitize CEO Carlos Domingo said in a statement that Hamilton Lane’s products, historically only available to institutions, will now be available to qualified US-based investors.



“Tokenization now makes it possible for individual investors to participate in private equity value creation for the first time in a digitally native way,” Domingo said.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We are at the beginning of a process through which individual investors can access the same kinds of opportunities as university endowments or sovereign wealth funds, and that is very exciting,” he said.</blockquote>



The Hamilton Lane funds are set to be tokenized by Securitize’s digital transfer agency and managed by its digital asset management arm. The crypto firm intends to make them available for investment via its brokerage platform, Securitize Markets, this quarter.



The investment firm teamed up with ADDX earlier this year to tokenize a class of shares issued by the Hamilton Lane Global Private Assets Fund for investors in Asia.



The news comes a few weeks after Securitize revealed the launch of a fund tokenizing an interest in <a href="https://www.kkr.com/" target="_blank" rel="noreferrer noopener">KKR</a>’s Health Care Strategic Growth Fund II on the Avalanche public blockchain. KKR, which offers alternative asset management, as well as capital markets and insurance solutions, had $491 million as of June 30.&nbsp;



Securitize also made available <a href="https://www.youtube.com/watch?v=KXtC1KdYJjg" target="_blank" rel="noreferrer noopener">a tokenized art fund</a> from Artory and Winston Art Group on its platform last month. The $25 million closed-end fund is actively managed and is on the Polygon blockchain.



The Hamilton Lane funds will be on “a similarly reputable” public blockchain, a spokesperson told Blockworks, though the companies have not yet determined which one.



“This collaboration with Securitize is our latest step toward enabling access to the strong returns and performance opportunities generated within the private markets space for a newer set of investors, while increasing usability and transparency through the use of blockchain technology,&#8221; Victor Jung, Hamilton Lane’s head of digital assets, said in a statement.



Though the funds are not available to the broader retail investor segment, DQYDJ reported that 10.6% of American households were accredited in 2020. Those households controlled roughly $73 trillion of wealth.&nbsp;



“We are looking into how this market may evolve and be more inclusive of retail investors in the future, but we are not there yet,” a Hamilton Lane spokesperson told Blockworks.



<a href="https://cms.blockworks.co/arca-labs-and-securitize-partner-on-tokenized-us-treasury-fund/" target="_blank" rel="noreferrer noopener">Arca Labs partnered with Securitize</a> last year to bring a tokenized United States Treasury fund to market. The companies revealed at the time that shares would be issued through ArCoin digital asset security tokens, and that records of token ownership would be maintained off-chain.&nbsp;



A few months prior, <a href="https://cms.blockworks.co/morgan-stanley-blockchain-capital-lead-48m-funding-for-securitize/" target="_blank" rel="noreferrer noopener">Securitize raised $48 million in a funding round</a> co-led by Morgan Stanley and Blockchain Capital.



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Private Markets Investment Firm Hamilton Lane To Tokenize 3 Funds

<div id="highlights-block_62b5d93dbc438" class="highlights">
 <ul>
 <li>Longtime Facebook leader becomes CEO of Web3 advertising provider</li>
 <li>Activision Blizzard executive moves over to lead blockchain gaming company</li>
 </ul>
 
</div>



Though companies such as <a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">Crypto.com</a>, <a href="https://cms.blockworks.co/cryptocurrency-lender-blockfi-set-to-cut-staff-by-a-fifth/" target="_blank" rel="noreferrer noopener">BlockFi</a>, <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">Coinbase</a> and <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">Gemini</a> have recently revealed plans to cut staff or slow hiring, others continue sharing their intentions to grow their headcount.&nbsp;



Demand for talent is strong for firms looking to expand. A recent analysis of Google search data by Cryptojobslist.com found that searches for “remote crypto jobs” grew by 560% worldwide this month.



Crypto exchange OKX announced last week that it plans to increase headcount by 30%, growing by 1,500 people to about 5,000 over the next 12 months.



“Seeing people in our community losing their jobs is quite unsettling,” an OKX spokesperson told Blockworks. “Our focus right now is to see if we can be the home for the incredible talent in our industry who may have been impacted by the recent layoffs.”



The exchange is targeting professionals in product design, engineering and marketing as its main focus shifts to building a leading brand in the space.&nbsp;&nbsp;



OKX has seen a slight increase in applications since the onset of the bear market. It received more applications in April than in any previous month of the year, and even more were submitted in May, according to the company representative.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“This is a great time to hire talent who are coming to the industry not just for the hype but rather because of their pure passion for building,” the spokesperson added.</blockquote>



Derivatives exchange Bitget is also seeing an influx of applicants, most likely due to headcount cuts from other companies, Managing Director Gracy Chen said.&nbsp;



Bitget revealed earlier this week that it seeks to double its workforce to 1,000 people by the end of the year. The company is focused on filling operations, product development and customer services roles across regions in which it has seen growth.&nbsp;



A crypto winter gives the firm “a golden window” to achieve low-cost, high-quality growth, Chen explained. Historical data has proven that with each market downturn, the recurring bull run will bring about even stronger and positive results, she added.



“Oftentimes, a company’s success is very visible during a bull market, however, the foundation was likely established during a bear market,” Chen told Blockworks. “Regardless of the market conditions, it was a pressing business need for us to push forward with our hiring plans to pave way for new developments to come.”



<h3 class="wp-block-heading">A look at this week’s hires</h3>



Web3 advertising provider <a href="https://c212.net/c/link/?t=0&amp;l=en&amp;o=3570727-1&amp;h=1983329226&amp;u=https%3A%2F%2Fpermission.io%2F%3Futm_source%3DBitcoin.com%26utm_medium%3DBlockman.pro%26utm_campaign%3Dpolygon_migration&amp;a=Permission.io" target="_blank" rel="noreferrer noopener">Permission.io</a> appointed longtime Facebook executive Thomas Shin as its CEO.&nbsp;



Shin has spent 28 years in the digital advertising space at companies such as Meta (formerly Facebook), Yahoo!, MediaMath and Efficient Frontier, which was acquired by Adobe. Most recently, he was head of the Americas business at mobile programmatic startup Moloco.&nbsp;



Permission.io founder and former CEO Charlie Silver is set to become executive chairman.



Crypto exchange OKX brought aboard Rachel Conlan to be its global head of brand marketing and partnerships.



Conlan is responsible for the company’s brand and marketing efforts through partnerships with Manchester City FC, Tribeca Festival and McLaren Racing. The latter collaboration, <a href="https://cms.blockworks.co/crypto-exchange-okx-inks-f1-mega-deal/" target="_blank" rel="noreferrer noopener">revealed in May</a>, came around the time OKX hired chief marketing officer Haider Rafique from competing exchange OKcoin.&nbsp;&nbsp;



Conlan previously led the global partnerships team at international sports and entertainment agency CAA Sports and also worked as global chief marketing operations officer for communications group Havas.



Hut 8 Mining named Aniss Amdiss as its chief legal officer. He will lead Hut 8’s legal and governance portfolios and serve as corporate secretary, reporting to CEO Jaime Leverton.&nbsp;



Prior to joining Hut 8, Amdiss served as vice president of legal, general counsel and corporate secretary at healthcare services company Greenbrook TMS Inc.



Digital asset custody company Digivault has added Greg Vosper as its chief commercial officer to drive the firm’s business development, partnerships and sales strategy.&nbsp;



Vosper was most recently the director of strategic partnerships at Zodia Custody, a crypto custody solution built by Standard Chartered’s venture arm and asset management giant Northern Trust. He was also previously the lead of new client development and sales at CME Group and a business advisory and tax committee manager at Nexia International.



Private markets investment management firm Hamilton Lane hired Victor Jung to its newly created head of digital assets role.&nbsp;



The company had about $900 billion in assets under management and supervision — $106 billion in discretionary assets and $795 billion in advisory assets — as of March 31.



Jung was most recently head of distribution partners and liquid private markets for the Asia-Pacific region at Partners Group, where he oversaw business development and led onboarding for the firm’s wealth technology platforms.



Mark Aubrey is set to join blockchain gaming company Catheon Gaming as its co-CEO on July 11.



Aubrey joins the company from Activision Blizzard, the creators of games such as Call of Duty and World of Warcraft; there he worked as managing director and head of its Asia-Pacific arm. Before that, Aubrey was a marketing director at Warner Bros. Entertainment.



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