In response to increasing market demand for tokenized real-world assets from fund issuers and investors, Provenance Blockchain Labs (ProvLabs), a blockchain development company building a modern financial services operating system with the dApps and expertise TradFi needs to digitize trillions of dollars of assets on the Provenance Blockchain, announced the launch of an industry-defining platform that offers a comprehensive tokenization, administration, listing and lending solution. The announcement was made in parallel with the announcement of a partnership with Figure Markets, and NAV Lend.

By utilizing ProvLabs’ platform, asset managers will have the option to list their funds on Figure Markets’ digitally-native “everything marketplace” — a decentralized custody marketplace for crypto, stocks, bonds, credit, and more. If appropriate, funds can also be traded on the SEC-registered, Alternative Trading System (ATS) operated by Figure Securities, Inc., a registered broker-dealer. Investors will also have the option to utilize the streamlined onboarding of Figure Market’s universal passport.

NAV Lend, a lending platform that connects borrowers to lenders, will offer investors the ability to use their fund interests as collateral for loans. These loans, also known as “NAV loans” have existed in traditional financial services for more than a decade, but their adoption has been limited because of transparency and efficiency issues. NAV Lend’s solution is considerably more visible and efficient because it uses the Provenance Blockchain and Digital Asset Registry Technologies, Inc. (DART) to register, verify and perfect counterparties’ assets and ensure that assets remain under the appropriate control until the transaction is completed.

 “The ProvLabs platform enables fund managers to embrace the transformative nature of Provenance Blockchain, which is contributing to the development of modern and efficient capital markets. When the blockchain acts as the sole ledger of record for the entire securities lifecycle, investors and issuers can realize material benefit,” said Anthony Moro, CEO of ProvLabs, “From issuance, transfer and settlement to securities lending and perfection, digitally-native funds can operate with precision, efficiency, and speed.“

“Ownership perfection and cross-collateralization are the capabilities that will unlock broad investor and issuer adoption of blockchain-based, real-world asset-focused private funds,” said Mike Cagney, CEO of Figure Markets. “This strategic partnership between ProvLabs, NAV Lend, and Figure Markets provides the fund industry’s best path to realizing blockchain’s true value.”

 “Private fund investors desire options for liquidity, but they typically don’t want to sell their interests at significant discounts in the secondary market. Pledging an illiquid fund as collateral for a loan provides a better way for them to make these long term assets more productive,” said Frank Fernandez, Co-Founder of NAV Lend. “ProvLabs provides the optimal platform to tokenize funds using the Provenance Blockchain. The protocol’s innovative Hold module enables new collateral opportunities, while also offering the most effective approach to navigating through challenges raised by traditional transfer restrictions and regulatory and compliance requirements.” 

The announcement brings fund tokenization full circle and highlights the benefits of Provenance Blockchain for alternative asset managers. To date, Provenance has become the global leading blockchain for financial services, with over $12 billion in financial asset value locked on-chain and more than $30 billion in supported transactions. 

Source: Provenance Blockchain Labs