Hamilton Lane, a private credit manager with over $900 million in assets under management, has invested in cryptocurrencies by offering a tokenized private credit fund on Solana. This particular move is part of a shift in which mainstream traditional financial sector institutions are gradually opening up to the democratization of the digital asset trading space.
Tokenization of the SCOPE Fund on Solana
Hamilton Lane Management Company reported that it has gained the ability to issue a private credit fund linked to the Solana Network as a way to adopt blockchain-based DLT. The company will link this to a credit management fund called the “Senior Credit Opportunities Fund,” and the company’s total assets are approximately $556 million.
To further this effort, Hamilton Lane has partnered with Libre, a Web3 protocol developed through a joint venture between Brevan Howard’s WebN Group and Nomura’s crypto firm Laser Digital. The partnership is aimed at reaching investors and could potentially expand Hamilton Lane’s investor base and distribution channels.
Increased accessibility and liquidity
Real World Assets (RWAs) include debt, equity, real estate, mutual funds and other investments that are liquid and restricted to traditional financial markets, and their tokenization is believed to improve liquidity, transparency and market openness.
Once an asset is fully tokenized, it will have the potential to issue instantly transferable claims of ownership and convert them into other cryptocurrencies on the secondary market.
This confirms a trend spreading across the financial industry, with BlackRock and many other large firms also showing interest in the idea of implementing tokenization for more traditional forms of assets.
Typically, the fund has delivered 10% annualized returns to USD investors, fulfilling its role of providing a long-term, stable private market investment vehicle. Hamilton Lane is using the integration of Solana to position everyone for success and create an environment where more people can efficiently access high-quality private credit investments.
Potential Impact on Solana ETF Approval
According to a recent update from ETF Store president Nate Djerassi, the idea of a spot Solana ETF is not impossible. Specifically, based on Djerassi’s insights, ETF issuers such as BlackRock, Fidelity, and VanEck could at some point file for a joint Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) ETF.
ETF traders are currently trading a Bitcoin ETF and a growing spot Ethereum ETF that was newly launched and approved by the US SEC.
As seen with the Solana initiative, blockchain technology has measurable applications for creating institutional-grade financial derivatives.
Related article: Solana can deliver on blockchain OG promises: ETHCC’s Lily Liu
