In February, Citi announced the completion of a proof of concept on tokenization of a private equity fund in conjunction with Wellington Management and WisdomTree.
“When applied through the value chain from base asset to end investor’s holdings, tokenization and blockchain could enable better ‘look through’ of relevant metrics to end investors – assuming data metrics are brought on-chain and are machine readable,” explains Nisha Surendran, emerging solutions lead for Citi digital assets.
A survey of asset managers conducted by funds network Calastone in the third quarter of 2023 found that 67% of US-based managers and 61% of Asian managers expected to bring tokenized offerings to market within 12 months, with firms engaged in private assets most advanced in their implementation efforts.
Issuers could start to rely on smart underlying assets that encapsulate their core representations with off-chain data feeds to automate allocation strategies.
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