Lazard Partners With Bitfinex Securities to Launch Tokenized Funds

Lazard, a 175-year-old global financial services firm, is set to enter the asset tokenization arena by collaborating with Bitfinex Securities and SkyBridge Invest. This initiative aims to create tokenized funds under Kazakhstan's financial services law, marking a significant step for traditional finance into the digital asset space.

Key Takeaways

• Lazard plans to create tokenized funds with Bitfinex Securities and SkyBridge Invest.

• The funds will be issued under Kazakhstan's financial services law, regulated by the Astana Financial Services Authority (AFSA).

• Retail investors will have access to these funds, purchasable with Tether's stablecoin (USDT).

• The initiative was formalized through a memorandum of understanding signed in Lugano, Switzerland.

Overview of Tokenized Funds

The tokenized funds will operate under a "fund of funds" structure, providing exposure to various existing Lazard-managed funds that focus on global and emerging market equities. Previously, these funds were only accessible to professional investors and institutions.

Matthias Kruse, managing director at Lazard, emphasized that this move allows the firm to better serve retail investors. He stated, "We are a B2B investment firm, and this is a good way for us to service retail investors."

The Role of Partners

• Bitfinex Securities: Responsible for the tokenization process, Bitfinex Securities is a licensed trading venue in El Salvador and Kazakhstan. It serves as the tokenization platform for the crypto trading venue Bitfinex.

• SkyBridge Invest: Acting as the broker and manager of the tokenized fund, SkyBridge Invest is a Kazakhstan-based investment services firm, distinct from SkyBridge Capital.

Benefits of Tokenization

Tokenization of real-world assets (RWA) is gaining traction as it offers several advantages:

1. Increased Efficiency: The process streamlines operations, reducing the time and resources needed for transactions.

2. Enhanced Liquidity: Tokenized assets can be traded more easily, providing better access to capital.

3. Lower Operational Costs: By utilizing blockchain technology, firms can minimize traditional financial overheads.

Market Trends

The trend of asset tokenization has gained momentum this year, with major financial institutions like BlackRock and HSBC beginning to offer tokenized products. According to industry analysts, the RWA market is projected to grow into a multi-trillion dollar sector in the coming years.

Lazard's asset management division currently oversees $245 billion in assets under management (AUM), positioning the firm well to capitalize on this emerging market. The collaboration with Bitfinex and SkyBridge is expected to further enhance Lazard's offerings in the evolving landscape of digital finance.

Conclusion

Lazard's foray into tokenized funds represents a significant shift in the financial services industry, bridging the gap between traditional finance and the burgeoning world of digital assets. As more firms explore tokenization, the landscape of investment opportunities for retail investors is set to expand dramatically, paving the way for a new era in asset management.

Sources

• Wall Street Financial Services Firm Lazard Plans to Create Tokenized Funds with Bitfinex Securities, CoinDesk.

• La firma de servicios financieros de Wall Street Lazard planea crear fondos tokenizados con Bitfinex Securities, CoinDesk.

• A empresa de serviços financeiros de Wall Street, Lazard, planeja criar fundos tokenizados com a Bitfinex Securities, CoinDesk.

• Ang Wall Street Financial Services Firm Lazard ay Plano na Gumawa ng Tokenized Funds sa Bitfinex Securities, CoinDesk.

• La société de services financiers de Wall Street Lazard prévoit de créer des fonds tokenisés avec Bitfinex Securities, CoinDesk.