Several prominent financial institutions are preparing to launch an Ethereum Layer 2 chain using Polygon CDK. The chain, named Libre, is expected to provide expanded distribution capabilities for asset managers. In light of this development, Polygon Labs CEO Marc Boiron has declared the CDK as “the home for institutional assets.”
The crypto industry has long held the belief that traditional financial markets will eventually be democratized on the blockchain, a sentiment encapsulated in the phrase “Institutions are coming.” The Polygon network continues to challenge this narrative, building on its achievements from the previous year by bringing funds from Franklin Templeton and Hamilton Lane on-chain. The network is now poised to welcome the first financial institution-backed and focused Ethereum Layer 2 chain.
In a post on January 10, Polygon Labs announced the Libre Chain, a protocol powered by the Polygon CDK and supported by some of the biggest names in institutional blockchain adoption. The backers of Libre include Laser Digital, a subsidiary of Japan’s largest investment bank, Nomura Group, WebN Group, an incubation hub backed by alternative investment giant Brevan Howard’s founder Alan Howard, Brevan Howard itself, Hamilton Lane, and Avtar Sehra, a pioneer of tokenization known for his work with Nivaura.
The Libre chain will enable regulated institutions to tokenize and issue alternative investments on the blockchain in a compliant manner. The goal is to allow for wider distribution for asset managers by streamlining legal, regulatory, and operational workflows in a safe and secure manner. The Ethereum Layer 2 chain is scheduled to launch in Q1 2024, with Hamilton Lane and Brevan Howard being the first to adopt it. Plans are also in place to introduce additional features such as collateralized lending and automated rebalancing of separately managed accounts (SMAs).
Polygon co-founder Sandeep Nailwal has praised the project’s potential to unlock new investment opportunities. Colin Butler, Polygon Labs Institutional Capital Head, teased the Libre Chain launch last week, generating significant excitement within the Polygon community.
Following the announcement of the Libre Chain, Polygon Labs CEO Marc Boiron stated that the Polygon CDK was the ideal platform for bringing institutional assets on-chain. Boiron argued that the Polygon Ethereum Layer 2 development kit’s zero-knowledge technology and modularity provided asset managers with the tools to access the DeFi ecosystem while maintaining a fully controlled environment. Libre is the latest addition to Polygon’s growing multichain ecosystem powered by the CDK, with other projects and firms such as Palm Network, Flipkart, and OKX also building with the tech stack.
Polygon’s multichain vision, as outlined in its 2.0 roadmap, aims to create “the ultimate value layer” on Ethereum, promising to allow users to navigate the ecosystem like a single blockchain with unified liquidity. However, it should be noted that the Libre chain has yet to launch, and it remains to be seen whether it will attract other financial institutions.
Institutional adoption has long been a major goal of the crypto industry. The Libre chain, powered by Polygon, represents a significant step towards this ambition.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇯🇵 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | Alan Howard, Avtar Sehra, Sandeep Nailwal, Colin Butler, Marc Boiron |
| Companies | Hamilton Lane, Nomura Group, Palm Network, Flipkart, Nivaura, OKX, Polygon Labs, Laser Digital, Brevan Howard, WebN Group, Franklin Templeton |
| Currencies | Ethereum, Bitcoin |
| Securities | None |
