Blockchain based assets are here to stay – accessibility and acceptance of associated services are on the rise. This was recently made evident when U.S. based Valentus Capital Management, in conjunction with Realio, announced its intent to develop a digital securities platform called Valentus Digital.
Powered by a tech-stack developed by Realio, Valentus Digital will operate as an investment portal. It will provide various types of investors with access to opportunities in the form of digital securities.
The first product scheduled to undergo tokenization through the platform is a $250M fund, built on a variety of assets (including real estate, debt instruments, and more)
By tapping into Realio and its tech-stack, Valentus gains the ability to tokenize this fund. This is done through the sale of digital securities, known in this case as ‘VAL1’ – each of which will provide its holder with proportionate exposure to the funds underlying assets.
While a partnership between these companies has already been struck, interested investors will have to remain patient. It is expected that the sale of these digital securities will take place leading up to early 2021.
When discussing the rationality behind tokenization, rather than hosting a more traditional fund, Valentus Digital described the choice as ‘opening wall street to main-street’. Essentially, the company is looking to cast a wider net, attracting a broader range of investors to its offerings.
Minimum investment requirements are noted as an example of how tokenization allows for a wider net. This digital fund will see a $10,000 minimum investment, compared to a $2,500,000 minimum in its traditionally structured funds.
Moving forward, Valentus indicates that it expects the upcoming Valentus Digital platform to become registered with the SEC as a private equity firm.
Furthermore, the company is also currently considering the creation/launch of its very own digital security – one which would provide its holders with exposure to profits realized by the company itself. At this time, however, this is simply a consideration, and not a given.
Upon announcing both, Valentus Digital and its inaugural fund, representatives from each company took the time to share their thoughts.
Derek Boirun, CEO of Realio, stated,
“We are thrilled to partner with Valentus and kick off Valentus Digital…Providing broad, global access to top-tier private equity opportunities is not just the vision for our platform, but also something that the markets are demanding, as evidenced by the surge of capital flowing into blockchain technologies and decentralized finance. The benefit also extends to larger investors who will enjoy increased liquidity of the asset.”
Behzad Taufiq, Founder of Valentus Capital Management, stated,
“Partnering with Realio is an exciting stepping stone…Having a Valentus fund token in this ecosystem will create tradability of the fund that wasn’t available before. Its transparency and flexibility will benefit institutional and retail investors alike, and we are excited to break this new ground.”
Founded in 2020, Valentus Digital is a subsidiary of Valentus Capital Management. Through its headquarters in New York City, it will act as an investment portal for investors looking to leverage the benefits of blockchain technology.
Founder and CIO, Behzad Taufig, currently oversees operations.
Founded in 2018, Realio maintains operations in New York City. The team at Realio have developed a suite of services which allow it to act as not only a fund manager, but tech provider, as well.
CEO, Derek Boirun, currently oversees operations.