With a planned launch in the first quarter of 2024, Libre founder Dr. Avtar Sehra said the protocol will expand its business offerings to include services such as automated rebalancing of secured loans and private investment portfolios in the future.
WebN Group, a fintech and Web3 incubation hub, has teamed up with Nomura-backed Laser Digital to unveil Libre, a fund tokenization protocol for asset managers and wealth advisors.
According to the announcement, the two companies will launch Libre to provide broad distribution capabilities for financial services firms and wealth advisors by safely and securely streamlining legal, regulatory and operational workflows.
Libre scheduled to debut in the first quarter
Libre was developed using the Polygon Chain Development Kit (CDK). This toolkit allows you to create a knowledge-based layer 2 blockchain on the Ethereum network, chosen for its scalability and security.
“We are thrilled to see Libre choosing the scalability and security of Polygon CDK to revolutionize the alternative investment space. Libre demonstrates the enormous potential of blockchain technology to open new opportunities for investors around the world,” said Sandeep Nailwal, co-founder of Polygon.
In addition to Libre, other blockchain projects such as OKX, Astar, Canto, Gnosis Pay, Immutable, Palm Network, and IDEX are exploring using Polygon’s CDK or designing and launching ZK L2 on Ethereum.
However, Libre, a fund tokenization platform, allows regulators to create and issue tokenized assets to ensure legal and regulatory compliance through automated lifecycle management.
The protocol is expected to officially debut before the end of the first quarter (Q1) of this year.
Libre expands its business offerings
With a planned launch in the first quarter of 2024, Libre founder Dr. Avtar Sehra said the protocol will expand its business offerings to include services such as automated rebalancing of secured loans and private investment portfolios in the future.
“While our MVP goal is to grow AUM by launching native issuance services and driving distributor consolidation, we are working closely with our partners and customers on our 2024 product roadmap, which includes secured lending and automated portfolio rebalancing. It’s about building your future of wealth. It’s an API,” Sehra said.
He also stated that in the long term, asset tokenization platforms will significantly reduce operating costs to almost zero, which currently averages around 100 basis points for alternative assets.
According to him, the ultimate goal is to monetize the protocol primarily through value-added web services such as collateral lending and secondary transfers.
Brevan Howard and Hamilton Lane Pioneer Libre Adopted
Investment management firms such as Brevan Howard and Hamilton Lane are poised to become the first issuers of Libre. The latest development comes amid growing interest in leveraging blockchain technology to improve the distribution and accessibility of alternative asset funds.
Victor Jung, head of digital assets at Hamilton Lane, expressed optimism about the transformative potential of tokenization to revolutionize investment management and trading. According to him, the company sees collaboration with leading companies like Libre as a strategic step to improve compliance and streamline access to private markets.
Meanwhile, Natalie Smith, head of strategy at Brevan Howard, also expressed the same opinion, emphasizing the importance of fund tokenization.
Smith highlighted how this approach provides investors with new means of accessing their strategies and provides increased flexibility while evolving the platform to meet evolving client needs.
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