Venture capital firm ParaFi Capital has taken a significant step toward blockchain integration by tokenizing a portion of its $1 billion in assets under management on the Avalanche (AVAX) blockchain in collaboration with real-world asset tokenization platform Securitize.
ParaFi Capital Tokenizes Portion of $1 Billion Venture Fund on Avalanche via Securitize
The move marks the firm’s shift from investing solely in asset tokenization projects to using the technology itself.
Known for its heavy involvement in the crypto space and real-world asset tokenization, ParaFi has raised $120 million to invest in other digital asset funds and recently participated in a $47 million strategic round for Securitize.
The firm now plans to tokenize a portion of its latest venture funding, opening it up to a wider audience of investors.
“ParaFi has been among the most active investors globally in companies focused on traditional asset tokenization,” said Ben Forman, founder and managing partner of ParaFi. “We don’t want to just be passive investors; we want to actively use this technology ourselves.”
Forman emphasized that tokenizing private market strategies could streamline reconciliation processes, reduce costs, and offer longer-term benefits such as liquidity, programmability, and cross-margining.
This tokenization strategy will expand ParaFi’s investor base to new participants beyond institutional investors such as endowments and family offices.
The tokenized venture fund will trade on Securitize, allowing investors to take advantage of the platform’s borrowing and lending capabilities.
*This is not investment advice.