KKR's $4 Billion Fund Opens Door To Crypto Investors | Crypto

KKR’s $4 Billion Fund Opens Door To Crypto Investors

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– The SEC is cracking down on noncompliant Wild West cryptocurrency firms.

– A new breed of blockchain application, created from the ground up to be securities, is emerging to meet demand.

– Private-equity giant KKR opened up part of its $4 billion Health Care Strategic Growth Fund II (HCSG II) to be tokenized on the Avalanche (AVAX) blockchain.

– KKRs secret to being early to the game goes back to 2018, when the firm hosted a competition among its employees to identify the opportunities of fractionalizing investments using tokens on a blockchain.

– In September 2021, KKR co-founder and then co-CEO Henry Kravis invested an undisclosed amount of his own money in ParaFi Fund, a crypto investment and technology firm founded by a former KKR director Ben Forman.

– KKR showed it would stay the course established by its co-founder, making its first fund investment in a crypto firm, leading a $350 million investment in Anchorage Digital, a crypto custodian granted conditional approval to operate as a bank.

– With the partial tokenization of its HCSG II Fund, KKRs work with blockchain moved beyond investing and team building.

– Securitize CEO and founder Carlos Domingo says the firm expects to double revenue this year and has enough capital to stay afloat at least two years, even without any additional sales.

– Domingo says the compliance rules are there for a reason and in crypto people have realized that the lack of investor protection has actually resulted in a lot of retail people losing a lot of money.

– Other possible blockchain applications could involve entirely new ways to structure public funds.

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