Introduction

Lazard, a global financial services company with 175 years of history, has become the latest major player to enter the rapidly growing asset tokenization sector. The firm has announced plans to create tokenized funds in partnership with Bitfinex Securities and SkyBridge Invest, joining the likes of BlackRock and HSBC in embracing blockchain technology to transform traditional investment vehicles.

Lazard's Tokenized Fund Initiative

Under the partnership, Lazard will create tokenized versions of its existing funds focused on global and emerging market equities. These funds, previously only available to institutional and professional investors, will now be accessible to retail investors through tokenization.

The tokenized funds will be issued under the regulatory purview of the Astana Financial Services Authority (AFSA) in Kazakhstan, where both Bitfinex Securities and SkyBridge Invest are licensed to operate. Bitfinex will be responsible for the actual tokenization process, while SkyBridge will act as the broker and manager of the tokenized funds.

Notably, the tokenized Lazard funds will be purchasable using Tether (USDT), the world's largest stablecoin. However, there will be certain geographical restrictions on retail investor access.

The Benefits of Tokenization

Lazard's move into tokenization highlights the significant benefits this technology can bring to the world of asset management. As Matthias Kruse, a managing director at Lazard, explained, tokenization "improves efficiency, liquidity and helps lower operational costs."

By representing fund shares as tokens on a blockchain, asset managers can enable faster, cheaper, and more globally accessible investment compared to traditional structures. Tokenization also allows for fractional ownership, potentially opening up high-minimum funds to a wider pool of investors.

For Lazard, a firm that historically has served institutional clients, tokenization provides an avenue to efficiently tap into the retail investor market. "We are a B2B investment firm, and this is a good way for us to service retail investors," noted Kruse.

The Growing Wave of Asset Tokenization

Lazard's partnership with Bitfinex and SkyBridge is part of a broader wave of traditional financial institutions exploring asset tokenization. Giants like BlackRock and HSBC have already begun offering tokenized products, drawn by the promise of enhanced efficiency and liquidity compared to legacy financial infrastructure.

According to projections from major consultancies like McKinsey, BCG, and Bernstein, the total market for tokenized real-world assets could reach into the trillions of dollars by 2030. This reflects a growing recognition of tokenization's potential to fundamentally reshape how financial assets are issued, traded, and owned.

The Future

Asset tokenization looks set to be one of the key trends shaping the future of finance. By bringing the benefits of blockchain technology to traditional investment vehicles, it promises to create a more efficient, accessible, and innovative asset management landscape.

Lazard's move into this space, with its focus on opening institutional-grade funds to retail investors, encapsulates both the transformative potential of tokenization and the increasing convergence between the worlds of traditional finance and decentralized technology.