Investment management firm Hamilton Lane (HLNE) will tokenize three of its funds in a partnership with digital asset securities company Securitize.
Hamilton Lane plans to give qualified U.S.-based investors access to funds providing exposure to direct equities, private credit and secondary transactions, which will be tokenized via Securitize's digital transfer agency, according to an announcement Wednesday. The firms expect the tokenized funds to be available for investment by fourth quarter of this year.
The aim of tokenization is to make private market investment available to a broader set of investors. Where private equity investments are generally only accessible to institutional or ultra-high net worth investors, blockchain technology makes them available to individual investors.
Hamilton Lane, which has $832.5 billion in assets under management and supervision, follows similar move from KKR. The investment giant last month announced plans to tokenize its Health Care Strategic Growth Fund on the Avalanche blockchain, also in partnership with Securitize.
Also last month, SWIFT, the messaging system that supports international bank transactions, partnered with blockchain network Chainlink to develop a cross-chain interoperability protocol to facilitate token transfers across all blockchain networks.
Read more: Why Goldman Sachs Is Exploring Tokenizing Real Assets