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$1.2 Billion Fund Gets Partially Tokenized

ParaFi Capital is investing in digital assets.

By Finst News
• 2 min read
$1.2 Billion Fund Gets Partially Tokenized

ParaFi Capital is investing in digital assets. The firm is now tokenizing part of its latest $1.2 billion venture capital fund on the Avalanche blockchain. Trading will be possible through the Securitize platform.

“We decided we wanted to eat our own dog food,” says ParaFi founder Ben Forman. "We’re investors in this technology, but we didn’t want to just invest in the tokenization infrastructure. We want to use it ourselves."

Tokenizing a fund means turning fund shares into digital tokens that are stored and managed on a blockchain. One of the benefits of tokenization is that it lowers the barrier to entry and lets more people take part in certain types of investments. ParaFi is opening up its fund to a broader group of investors, such as foundations and family offices.

The Avalanche blockchain, founded by Emin Gün Sirer, was chosen in part because of its compatibility with the Ethereum Virtual Machine (EVM), low transaction fees, and fast transaction finality. These features make Avalanche a strong fit for institutional use.

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