In response to increasing market demand for tokenized real-world assets from fund issuers and investors, Provenance Blockchain Labs (ProvLabs), a blockchain development company building a modern operating system for financial services with the dApps and expertise needed for TradFi to digitize trillions of dollars of assets on the Provenance Blockchain, announced the launch of an industry-defining platform that provides a comprehensive tokenization, management, listing and lending solution. The announcement came alongside the announcement of a partnership with Figure Markets and NAV Lend.
By leveraging ProvLabs’ platform, asset managers have the ability to list their funds on Figure Markets’ digital “everything marketplace” – a decentralized custody marketplace for cryptocurrencies, stocks, bonds, loans and more. Where applicable, funds can also be traded on the SEC-registered Alternative Trading System (ATS) operated by Figure Securities, Inc., a registered broker-dealer. Investors also have the option to leverage Figure Market’s streamlined Universal Passport onboarding.
NAV Lend, a lending platform that connects borrowers with lenders, offers investors the ability to use their fund shares as collateral for loans. These loans, also known as “NAV loans,” have existed in traditional financial services for more than a decade, but their adoption has been limited due to transparency and efficiency issues. NAV Lend’s solution is much more visible and efficient because it uses the Provenance Blockchain and Digital Asset Registry Technologies, Inc. (DART) to register, verify and perfect counterparties’ assets, ensuring that the assets remain under appropriate control until the transaction is completed.
“The ProvLabs platform enables fund managers to leverage the transformative nature of the Provenance Blockchain, which contributes to the development of modern and efficient capital markets. When blockchain acts as a single record-keeping system for the entire lifecycle of securities, investors and issuers can realize significant benefits,” said Anthony Moro, CEO of ProvLabs. “From issuance, transfer and settlement to securities lending and perfection, digitally native funds can operate accurately, efficiently and quickly.”
“Ownership perfection and cross-collateralization are the capabilities that will enable widespread adoption of blockchain-based, real-world asset-focused private funds among investors and issuers,” said Mike Cagney, CEO of Figure Markets. “This strategic partnership between ProvLabs, NAV Lend and Figure Markets provides the fund industry with the best path to realizing the true value of blockchain.”
“Private fund investors want liquidity options but typically do not want to sell their shares at significant discounts on the secondary market. Pledging an illiquid fund as collateral for a loan is a better way for them to make these long-term assets more productive,” said Frank Fernandez, co-founder of NAV Lend. “ProvLabs provides the optimal platform to tokenize funds using the Provenance Blockchain. The protocol’s innovative hold module enables new collateral opportunities while providing the most effective approach to addressing the challenges posed by traditional transfer restrictions and regulatory and compliance requirements.”
This announcement brings fund tokenization full circle and underscores the benefits of Provenance Blockchain for alternative asset managers. To date, Provenance has become the world’s leading blockchain for financial services, with over $12 billion in financial assets locked on the blockchain and over $30 billion in transactions supported.
Source: Provenance Blockchain Labs
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