Today Citi announced its latest blockchain proof of concept involving the tokenization of a private fund within the Avalanche blockchain ecosystem. The tokenized fund was one of Wellington Management’s private equity funds, and the test also involved WisdomTree and ABN Amro.
Citi isn’t the first institution to spot the potential for private fund tokenization. It’s a $10 trillion asset class where processes are more manual and less standardized.
In this case, smart contracts encoded the fund distribution rules. Other features trialed included identity credentials and using the fund token as collateral for an automated lending contract with DTCC Digital Assets (formerly Securrency).
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