Launch of S&P index funds in the form of crypto tokens

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Digital asset firm Securitize has partnered with S&P Dow Jones Indices to tokenize two of its index funds. The tokens will follow the value of the S&P Cryptocurrency Large Cap Ex-MegaCap Index and the S&P Kensho New Economies Composite Index. Securitize used Algorand, a Proof-of-Stake blockchain, as the underlying chain for the tokenization of funds. Share this article

Digital asset firm Securitize unveiled two tokenized funds in partnership with S&P Dow Jones Indices, the world’s leading index provider.

Securitize launches tokenized index funds

Two tokenized funds that will follow the S&P indices have been launched.

In a blog post, Securitize, a digital asset securities firm, announced a partnership with S&P Dow Jones Indices to symbolize two of its investment indices: the Cryptocurrency Large Cap Ex-MegaCap Index and the Kensho Index New Composite Economies.

While the S&P Cryptocurrency Large Cap tracks 30 different cryptocurrencies, the S&P Kensho New Economies fund gives investors exposure to emerging technology sectors such as artificial intelligence, virtual reality, fintech and nanotechnology.

Newly launched products will be delivered through Securitize’s digital asset management arm, Securitize Capital, and offered only to accredited investors. In a press release on Wednesday, Securitize said it used Algorand, a proof-of-stake blockchain, as the underlying network for tokenization of funds. When asked why the team chose to go for Algorand, Jamie Finn, co-founder and chairman of Securitize, told Crypto Briefing:

“We have an excellent relationship with Algorand and have issued the largest Reg A + capital increase ever on their channel. So when we decided to launch these exclusive funds featuring two of S & P’s most innovative indices, Algorand was the natural choice because of its speed and cost. Efficiency.”

This is the first time that fully regulated investment products that track S&P index funds have been offered in token form. In the crypto space, tokenized indices already exist but operate outside of regulatory oversight.

Scott Harrigan, CEO of Securitize, believes the latest launch could lead to a wave of token funds going forward and further boost institutional blockchain adoption. Discussing the launch of the token funds, Harrigan said:

“S&P DJI’s innovation and leadership in tokenization of its indices is a major sign that institutions understand the many benefits of tokenization, from efficiency to easier access to investors and, I predict this will be the start of a wave of tokenized funds over the next few months. ”

Prior to the product launch, Securitize partnered with Anchorage Digital, a crypto services company that will provide custody services. In addition, Copper Technologies and Interactive Brokers will be the other partners who will manage the assets of the funds.

Disclosure: At the time of writing, the author of this article owned ETH and other cryptocurrencies.

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