Securitize today launched Securitize Capital, a wholly-owned subsidiary that will serve as an alternative investment manager of digital asset funds to provide investors exposure to cryptocurrencies and decentralized finance (DeFi) in the form of digital asset securities.
Securitize Capital was born from the observation that it is complicated for institutional investors to access exposure to cryptocurrencies and the yields earned through blockchain DeFi strategies. It will provide vehicles for institutional and accredited investors to access that exposure.
Two flagship funds will launch in early June. They will provide investors direct exposure to Bitcoin (BTC) or USD Coin (USDC).
The Securitize Capital BTC Yield Fund and USDC Yield Fund come with a management fee of 0.5 per cent. Securitize Capital has engaged Anchorage Lending and Genesis, a prime broker, for sourcing lending opportunities. The funds will be administered by MG Stover & Co and audited by Spicer Jeffries.
When the funds will be open for participation in early June, they will initially be available only to accredited and institutional investors. To participate, investors will first need to create a Securitize ID account, after which they will gain access to the Bitcoin and USDC yield funds, as well as a digital asset marketplace containing a broad range of investment options including private equity, debt, commodities, funds, and other alternative assets.
Shares in the fund will be issued as digital asset securities recorded on the Algorand blockchain, with Securitize as the transfer agent.
“We see very strong demand from institutional investors for cryptocurrency exposure. They want to go beyond simply holding a cryptocurrency, but rather are seeking access to the yield generated by DeFi strategies,” said Carlos Domingo, CEO of Securitize. “Current offerings are very limited, mostly with no yields and high fees. There is nothing in the marketplace like the institutional-grade funds we are announcing today and we look forward to introducing more products like this in the future.”
“We’re proud to enable institutions like Securitize with a compliant, safe way to lend digital assets through Anchorage Financing,” said Anchorage Digital cofounder and president Diogo Mónica. “Anchorage Digital has always been committed to bringing more access to digital assets and these funds make Bitcoin and stablecoin investment accessible for a whole new range of participants.”
“Genesis launched the first U.S. OTC bitcoin trading desk in 2013. Since then, we’ve grown to facilitate billions of dollars in monthly trades, loans and transactions – including over $60 billion in Q1 ’21. As demand for digital currencies by institutional investors increases, we’re pleased to be working with Securitize. Together, we’re making digital currencies and yield available to institutional investors in the form of funds they’re already familiar with,” said Matt Ballensweig, head of Institutional Lending at Genesis.
