Lazard, a well-established global financial services and asset management company with a history spanning 175 years, has joined forces with Bitfinex Securities and SkyBridge Invest to venture into the world of tokenized funds. This move aligns Lazard with the growing trend of asset tokenization, where traditional financial institutions are exploring the potential of blockchain technology in creating new financial products.
The tokenized funds will be established under the regulatory framework of Kazakhstan’s financial services law and will be overseen by the Astana Financial Services Authority (AFSA). Both Bitfinex Securities and SkyBridge Invest hold licenses to operate in Kazakhstan, positioning them as key players in this collaboration. Bitfinex Securities will be responsible for the tokenization process, while SkyBridge will serve as the broker and manager of the tokenized fund.
These tokenized funds will provide retail investors with access to a “fund of funds” structure that includes various Lazard-managed funds focused on global equities and emerging market equities. Previously, these investment opportunities were only available to professional investors and institutions. Matthias Kruse, managing director at Lazard, emphasized that this initiative allows the firm to cater to retail investors, expanding their reach in the market.
Kruse highlighted the benefits of tokenization, noting that it enhances efficiency, liquidity, and reduces operational costs. Tokenization involves digitizing real-world assets, such as bonds, credit, and funds, by placing them on blockchain technology. This approach aims to streamline settlement processes and improve overall efficiency compared to traditional financial systems.
The signing of a memorandum of understanding (MoU) between the involved parties took place in Lugano, Switzerland during the Plan B conference. This event signifies a significant step towards the creation of these tokenized funds and showcases the commitment of Lazard, Bitfinex Securities, and SkyBridge Invest to this innovative financial offering.
As the trend of asset tokenization gains momentum, major players in the financial industry, including global banks and asset managers like BlackRock and HSBC, are exploring opportunities in this space. Analysts predict that the market for tokenized real-world assets could reach trillions of dollars in the coming years, indicating substantial growth potential in this sector.
Lazard’s asset management business currently oversees $245 billion in assets under management (AUM), solidifying its position as a key player in the financial services industry. SkyBridge Invest, a Kazakhstan-based investment services firm, brings its expertise to the collaboration, while Bitfinex Securities, a licensed trading venue in El Salvador and Kazakhstan, leverages its tokenization platform to facilitate this innovative offering.
Overall, the partnership between Lazard, Bitfinex Securities, and SkyBridge Invest represents a strategic move to tap into the growing market for tokenized funds and provide retail investors with access to previously exclusive investment opportunities. By embracing tokenization, these traditional financial institutions are adapting to the digital age and paving the way for a new era of financial innovation.