SkyBridge Pioneers Hedge Fund Tokenization on Avalanche Blockchain

Avalanche has reached a significant milestone with a $300 million tokenization deal involving its blockchain network, marking a pivotal step in bridging traditional finance and decentralized technology. The agreement was announced by SkyBridge Capital, a prominent investment firm founded and led by Anthony Scaramucci, who is known for his deep networks in alternatives and digital assets. SkyBridge will tokenize two of its flagship hedge funds, Digital Macro Master Fund Ltd and Legion Strategies Ltd, on the Avalanche blockchain. This initiative is being facilitated by Tokeny, a tokenization platform recently acquired by Apex Group, a global financial services provider managing over $3.5 trillion in assets.

The collaboration between SkyBridge, Tokeny, and Apex Group leverages the ERC-3643 token standard and Apex Group’s Digital 3.0 platform, which is designed to streamline the entire investment lifecycle—from creation and issuance to administration and distribution. This integration aims to enhance transparency, liquidity, and accessibility for investors while demonstrating the potential of blockchain to streamline traditional financial processes.

Anthony Scaramucci emphasized the importance of this initiative, stating that tokenizing funds on Avalanche represents a significant advancement in modernizing the alternative investment landscape. He noted that the move into digital and on-chain finance improves efficiency and aligns with the growing demand for smarter investment solutions. Scaramucci, a former Goldman Sachs executive and White House Communications Director, has long advocated for digital assets and is leveraging his influence to drive broader adoption of blockchain-based financial instruments.

Avalanche was selected for this initiative due to its institutional-grade infrastructure, characterized by high transaction speeds and near-instant finality. The platform supports real-world asset (RWA) tokenization and has a rapidly expanding ecosystem that already includes regulated offerings such as tokenized money market funds and private credit. Avalanche's compatibility with Ethereum's Solidity language and its scalability make it a preferred choice for enterprises looking to tokenize traditional assets and deploy them on-chain.

John Wu, President of Ava Labs, highlighted the transformative potential of this partnership. He described the collaboration as a pivotal moment for institutional adoption and a strong validation of Avalanche’s position as a premier blockchain for connecting capital. He noted that SkyBridge’s extensive network among allocators further reinforces the significance of this deal and signals that tokenization is moving toward mainstream adoption.

The tokenization process will be executed under the operational infrastructure provided by Apex Group, which ensures a single-source solution for institutional clients transitioning their funds to blockchain-based rails. The integration includes capabilities for seamless creation, issuance, administration, and distribution, making it easier for institutional investors to engage with digital assets. Apex Group’s Daniel Coheur, Global Head of Digital Assets and Co-Founder of Tokeny, emphasized that this initiative demonstrates how institutional barriers to tokenization can be overcome with the right technology and regulatory clarity.

This move reflects a broader trend in the financial industry where blockchain is being increasingly adopted to modernize asset management and investment processes. While tokenization has the potential to offer benefits such as disintermediation, cost reduction, and enhanced transparency, challenges remain around liquidity, regulatory compliance, and market readiness. The initiative by SkyBridge and Avalanche aims to address these issues by providing a scalable and secure infrastructure that can accommodate institutional-grade transactions and support the development of secondary markets.

In the context of real-world asset tokenization, Avalanche's role is particularly significant. The platform has attracted a growing number of tokenized assets across various categories, including private credit, real estate, and government securities. However, liquidity remains a critical bottleneck, as many tokenized assets exhibit low trading volumes and limited secondary market activity. This deal with SkyBridge could potentially serve as a model for improving liquidity and fostering broader adoption of tokenized assets by demonstrating their utility in traditional financial contexts.

The collaboration brings together next-generation technology, enterprise-grade infrastructure, and institutional credibility—a combination essential for accelerating the adoption of RWAs across hedge funds, private credit, and multi-strategy vehicles. By leveraging Avalanche’s institutional-grade architecture and the operational support of Apex Group and Tokeny, SkyBridge aims to create a seamless and secure environment for tokenizing and managing its hedge funds. This initiative not only advances SkyBridge’s digital strategy but also contributes to the broader evolution of blockchain in institutional finance.

Source:

[1] Avalanche (url1)

[2] Bitget (url3)