Cryptocurrencies, including blockchains such as Avalanche, have performed well in recent years and are attracting global interest. However, it is impossible to predict with certainty what will happen to the cryptocurrency industry in 2023 and beyond. The significant barrier to its widespread adoption may be the extreme volatility and sudden price swings. Due to the rapid fluctuations in cryptocurrency prices, you can become an instant millionaire or lose all your money.
Another example of how volatile the current crypto market is comes from the latest crypto market crash. Almost all cryptocurrencies have experienced a 50% drop in value, but not everyone is sure that the crypto crash will be over by 2022. Cryptocurrencies in the pre-sale stage seem to be the ideal investment during this bad market. Crypto lovers have never given up on the crypto-verse despite such frivolity. Securitize, the top company in the field of digital assets, is one of these benevolent followers.
KKR is signed on Avalanche blockchain
The $491 billion Health Care Strategic Growth Fund II (HCSG II) of asset management firm KKR will be subscribed to the Avalanche blockchain by digital asset company Securitize Capital. On September 13, KKR released the information. The head of Securitize Capital, Wilfred Daye, called the tokenization of HCSG II a “significant breakthrough” for private equity market access.
A $4 billion healthcare-focused fund investing in 23 North American and European businesses involved in the pharmaceutical, medical device and life sciences industries can now be owned by investors thanks to tokenization. Each token represents a part of the fund.
Investors must submit their passports, complete personal and tax information forms and successfully complete a “vitality check” to invest in the HCSG II fund on the Securitize Protocol. In addition, investors must pay a management charge of 0.50 percent.
The tokenization of the HCSG II Fund, according to to Ava Labs founder and CEO Emin Gün Sirer, represents a “major milestone” for the blockchain sector in that “real world assets” can migrate into the chain.
On-chain tokenization of physical assets “reduces investment minimums, improves digital investor enrollment and compliance standards, and increases possibilities for liquidity through a regulated alternative trading system,” according to KKR.
The Blockchain Research Hub of the Boston Consultant Group (BCG) and Raiffeisen Bank International also highlighted the potential for tokenization to seize a significant share of global assets.
While Raiffeisen Bank International’s Blockchain Research Hub estimates that the majority of securities will be tokenized by 2030, BCG has predicted that $16.1 trillion in illiquid assets will be subscribed by then.
The Securitize Protocol is managed by Securitize Capital and aims to “reinvent private capital markets by delivering trusted end-to-end security token solutions.” It was integrated on the Avalanche blockchain in December 2020.
At the time of writing, Avalanche (AVAX) was priced at $19.29 with a daily dip of 9.5% according to Coin Gecko.