In a significant development, Lazard, a 175-year-old global financial services and asset management company, has announced its entry into the rapidly growing trend of asset tokenization. In partnership with Bitfinex Securities and SkyBridge Invest, Lazard plans to create tokenized funds that will be available to retail users.
Tokenized Funds: A New Era in Asset Management
The tokenized funds will be established under Kazakhstan’s financial services law, with regulatory oversight provided by the Astana Financial Services Authority (AFSA). Bitfinex Securities is responsible for the tokenization process, while SkyBridge Invest will act as broker and manager of the tokenized fund.
A Breakthrough in Asset Management
The introduction of tokenized funds marks a significant shift in the asset management industry. For the first time, retail users will have access to Lazard-managed funds that were previously available only to professional investors and institutions. The vehicle will offer exposure to various existing Lazard-managed funds focused on global equities and emerging market equities.
A ‘Fund of Funds’ Structure
Matthias Kruse, managing director at Lazard, explained the concept behind the tokenized fund: "We are a B2B investment firm, and this is a good way for us to service retail investors." The structure will enable retail users to invest in a diversified portfolio of existing funds managed by Lazard.
Tokenization: A Key Driver of Efficiency
Kruse highlighted the benefits of tokenization, stating that it improves efficiency, liquidity, and reduces operational costs. Tokenization involves placing assets such as bonds, credit, and funds on blockchain rails, enabling faster settlements and increased efficiency compared to traditional financial plumbing.
The Rise of Tokenized Products
Tokenization has become a rapidly growing sector in the intersection of digital assets and traditional finance. Global banks and asset managers are increasingly adopting tokenized products, with major players such as BlackRock and HSBC offering tokenized offerings this year.
Market Projections: A Multi-Trillion Dollar Market
According to market research firms McKinsey, BCG, 21Shares, and Bernstein, the Real-World Assets (RWA) market is poised to become a multi-trillion dollar market over the coming years. This trend represents a significant opportunity for Lazard and other players in the industry.
Lazard’s Asset Management Business
With $245 billion of assets under management (AUM), Lazard’s asset management business has a significant presence in the global financial services industry. The company is well-positioned to capitalize on the growing trend of tokenization.
Partnerships and Collaborations
The partnership between Lazard, Bitfinex Securities, and SkyBridge Invest represents a strategic collaboration that will enable the launch of tokenized funds. SkyBridge Invest is a Kazakhstan-based investment services firm, while Bitfinex Securities is a licensed trading venue in El Salvador and Kazakhstan.
Conclusion
Lazard’s entry into the asset tokenization trend marks a significant milestone for the company and the industry as a whole. The introduction of tokenized funds will enable retail users to access Lazard-managed funds that were previously available only to professional investors and institutions. As the RWA market continues to grow, we can expect to see more players in the industry adopting tokenization technology.
Key Takeaways:
- Lazard plans to launch tokenized funds with Bitfinex Securities and SkyBridge Invest.
- The tokenized funds will be established under Kazakhstan’s financial services law, with regulatory oversight provided by the Astana Financial Services Authority (AFSA).
- Retail users will have access to Lazard-managed funds that were previously available only to professional investors and institutions.
- The vehicle will offer exposure to various existing Lazard-managed funds focused on global equities and emerging market equities.
- Tokenization improves efficiency, liquidity, and reduces operational costs.
Glossary:
- Asset tokenization: the process of placing assets such as bonds, credit, and funds on blockchain rails.
- Real-World Assets (RWA): a rapidly growing sector in the intersection of digital assets and traditional finance that involves placing assets on blockchain rails.
- Tokenized products: financial instruments that are represented by tokens on a blockchain.
