Brevan Howard and Hamilton Lane are set to become the first asset managers to tokenize assets on the upcoming Libre protocol. This Web3 infrastructure provider is backed by Brevan Howard’s WebN and Nomura’s Laser Digital. The launch of Libre is planned for the first quarter of 2024, and it will offer asset tokenization and smart contracts through the Polygon network. This will support collateralized lending and automated rebalancing of separately managed accounts (SMAs).
On January 10, both Brevan Howard and Hamilton Lane announced a strategic partnership with Libre. Their goal is to enhance access to alternative investments. Victor Jung, the head of digital assets at Hamilton Lane, stated, “We believe that tokenisation has the potential to revolutionise the way investments are managed and traded.”
Alternative investments are financial assets that do not fit into the traditional categories of stocks, bonds, and cash. They often require higher minimum investments or longer holding periods compared to traditional investments and are usually less liquid. Examples of alternative investments include real estate, private equity, private debt, infrastructure, and hedge funds.
Tokenization, the process of converting rights to an asset into a digital token on a blockchain, could significantly impact alternative investments. It can increase accessibility and liquidity, and allow fractional ownership. Global bank Citi predicts that the tokenization market could reach up to $5 trillion by 2030.
Brevan Howard, known for its macroeconomic trading strategies, will use Libre to tokenize its portfolio of illiquidity assets. Hamilton Lane, on the other hand, will use the protocol for fixed-income products. Natalie Smith, head of strategy and client partnerships at Brevan Howard, noted, “The tokenisation of funds allows us to offer investors a new way to access our strategies, providing them with optionality, and further develops our platform to serve client needs.”
As of July 2023, Brevan Howard’s assets under management (AUM) were estimated to be between $35 and $40 billion. Hamilton Lane disclosed $854 billion in assets under management or supervision in September. Institutional demand and regulatory compliance for asset tokenization are expected to be among the main trends driving decentralized finance growth in 2024.
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| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Natalie Smith, Victor Jung |
| Companies | Hamilton Lane, Polygon network, Citi, Libre, Brevan Howard |
| Currencies | None |
| Securities | None |
