SkyBridge Tokenizes $300M Fund on Avalanche via ERC-3643

SkyBridge Capital is set to tokenize a $300 million hedge fund on the Avalanche blockchain using the ERC-3643 standard, marking one of the largest and most institutional-grade tokenization efforts to date. The initiative, set to launch on August 20, 2025, involves SkyBridge’s Digital Macro Master Fund Ltd and Legion Strategies Ltd. The move aims to bring enhanced transparency, liquidity, and efficiency to institutional investment structures by leveraging blockchain technology [1].

The tokenization will be supported by Apex Group through its Digital 3.0 platform, which streamlines fund creation, administration, and distribution for institutional investors. Tokeny, the fintech firm behind the ERC-3643 token standard, will handle the technical aspects of token issuance and compliance logic [1]. The use of ERC-3643 allows for built-in regulatory compliance, including identity verification, transfer restrictions, and investor accreditation checks, making it well-suited for regulated securities [1].

Avalanche was selected for its institutional-grade infrastructure, which supports high throughput and low latency, enabling faster settlement and potentially lower operational costs compared to traditional financial systems [1]. The platform’s Ethereum Virtual Machine (EVM) compatibility and scalability are also seen as advantages for bringing real-world assets onto the blockchain [1].

Daniel Coheur, Global Head of Digital Assets at Apex Group and co-founder of Tokeny, described the collaboration as a milestone in overcoming institutional barriers to tokenization through trusted operators and regulatory clarity [1]. John Wu, President of Ava Labs, added that the project validates Avalanche’s position as a leading network for institutional-grade tokenization and its ability to serve as a bridge between traditional and digital assets [1].

The broader tokenized real-world asset (RWA) market has already surpassed $26 billion, with forecasts from BCG estimating it could grow to $1 trillion by 2030 [1]. SkyBridge’s move is seen as part of a growing trend where institutional players are beginning to explore tokenization as a viable way to enhance capital efficiency and market access [1].

Investors will go through a KYC/AML and accreditation process via Apex Group before receiving ERC-3643 tokens representing their fund shares. These tokens will include compliance logic to ensure transfers adhere to legal and regulatory standards [1]. While tokenization does not alter the fund’s governance or fee structure, it is expected to streamline operational processes and reduce settlement friction [1].

The project highlights the increasing convergence of blockchain and institutional finance. If successful, it could serve as a blueprint for future tokenized funds and encourage more traditional asset managers to adopt blockchain-based structures [1]. The initiative also underscores the strategic importance of Avalanche and its ecosystem in supporting large-scale institutional tokenization.

CoinMarketCap data from August 20, 2025, showed AVAX experiencing increased trading activity, suggesting rising investor interest in blockchain networks capable of supporting institutional use cases [1]. Analysts and industry observers are watching closely as this project unfolds, given its potential to shape the future of RWA tokenization and institutional adoption [1].

[1] SkyBridge Capital Partners with Tokeny to Tokenize $300M in Hedge Funds on Avalanche. Apex Group. https://www.apexgroup.com/insights/skybridge-capital-partners-with-tokeny-to-tokenize-300m-in-hedge-funds-on-avalanche/

[2] Cryptocurrency Live News & Updates: ALT5 Sigma Denies. The Economic Times. https://m.economictimes.com/crypto-news-today-live-20-aug-2025/liveblog/123393863.cms

[3] Avalanche. X · avax. https://x.com/avax?lang=en