Private markets liquidity describes the ease with which investments in non-publicly traded assets can be converted into cash without significantly affecting their price. Private markets, such as private equity or venture capital, traditionally suffer from low liquidity due to infrequent trading and limited buyers. Digital asset technologies, through tokenization, offer potential solutions to improve the tradability of these assets. It addresses the challenge of illiquidity in non-public securities.
Context
Improving private markets liquidity through tokenization is a significant area of innovation in digital finance. News often covers platforms that fractionalize ownership of private assets, making them accessible to a broader investor base. Debates focus on the regulatory treatment of tokenized private securities and the technological infrastructure required to support secondary trading while maintaining investor protections.
Tokenizing the flagship credit fund on-chain enables fractionalized, 24/7 access, significantly enhancing capital efficiency and global investor reach.
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