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SkyBridge Capital, the prominent hedge fund founded by Anthony Scaramucci, announced plans to tokenize $300 million worth of assets from two of its funds on the Avalanche blockchain. The groundbreaking initiative, revealed on August 19, 2025, represents one of the largest institutional tokenization efforts to date and signals growing mainstream adoption of blockchain technology in traditional finance.
The tokenization process will be facilitated through a partnership with Tokeny, an enterprise-grade tokenization platform that was recently acquired by Apex Group Ltd, a $3.5 trillion financial services firm. This collaboration underscores the sophisticated infrastructure now available to traditional financial institutions looking to leverage blockchain technology for asset management and trading efficiency.
Scaramucci, who previously served as White House Communications Director, has been a vocal advocate for cryptocurrency adoption and blockchain integration in traditional finance. His firm’s decision to tokenize such a substantial portion of its assets demonstrates the practical benefits institutions see in blockchain-based asset management, including enhanced liquidity, reduced settlement times, and improved transparency.
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The tokenization process involves converting real-world assets into digital tokens that can be traded on a blockchain network. For SkyBridge’s hedge funds, this means creating digital representations of fund shares that can be managed, traded, and settled with greater efficiency than traditional methods. The process provides an immutable record of ownership and enables 24/7 trading capabilities.
Tokeny will implement the tokenization using the ERC-3643 standard, a compliance-focused tokenization protocol designed specifically for regulated securities. This technical approach ensures that the tokenized assets maintain regulatory compliance while benefiting from blockchain’s operational advantages. The partnership leverages Apex Group’s extensive infrastructure and regulatory expertise in the financial services sector.
Avalanche Blockchain’s Strategic Advantages
SkyBridge selected Avalanche as its blockchain platform due to its superior scalability, low transaction fees, and institutional-grade security features. Avalanche’s unique three-part Layer 1 architecture and consensus mechanism ensure near-instant finality for transactions, making it particularly suitable for high-value institutional asset transfers.
The Avalanche network’s ability to process thousands of transactions per second while maintaining decentralization makes it an attractive option for large-scale tokenization projects. Its subnet architecture also allows for customized blockchain environments that can meet specific regulatory requirements, a crucial factor for institutional adoption in heavily regulated industries like asset management.
Avalanche’s growing ecosystem of decentralized finance (DeFi) protocols and institutional-focused applications provides SkyBridge with access to a broader range of financial services and liquidity sources. The network’s compatibility with Ethereum Virtual Machine (EVM) also ensures seamless integration with existing blockchain infrastructure and tooling.
Institutional Tokenization Trend Accelerates
SkyBridge’s move follows similar initiatives by major financial institutions including BlackRock, JPMorgan, and Citi, all of which have been exploring tokenization as a means to modernize traditional finance operations. JPMorgan’s Onyx Digital Assets platform, for example, facilitates repo transactions and provides intraday liquidity for tokenized assets, demonstrating the practical applications of this technology.
The institutional tokenization market is experiencing rapid growth, with analysts predicting it could reach $16 trillion in market value by 2030. This explosive growth is driven by the technology’s ability to democratize access to investment opportunities, improve operational efficiency, and create new forms of liquidity for traditionally illiquid assets.
BlackRock’s BUIDL fund, which tokenizes U.S. Treasury securities, has garnered significant institutional interest and demonstrates the appetite for blockchain-based financial products among sophisticated investors. These early adopters are paving the way for broader institutional acceptance of tokenized assets as a legitimate and valuable financial innovation.
The benefits of tokenization extend beyond operational efficiency to include enhanced transparency, programmable compliance features, and the ability to fractionalize ownership of high-value assets. These advantages are particularly relevant for hedge funds and private equity firms looking to expand their investor base and improve capital efficiency.
SkyBridge Capital’s Digital Asset Strategy
SkyBridge Capital has been building its digital asset capabilities for several years, with Scaramucci positioning the firm as a bridge between traditional finance and the cryptocurrency ecosystem. The firm’s tokenization initiative represents a natural evolution of this strategy, combining institutional-grade asset management with cutting-edge blockchain technology.
The two funds selected for tokenization represent diverse investment strategies, allowing SkyBridge to test the technology across different asset classes and risk profiles. This phased approach enables the firm to refine its tokenization processes and demonstrate the technology’s versatility to potential investors and industry peers.
Technical implementation will utilize smart contracts to automate various fund operations, including investor onboarding, distribution payments, and regulatory reporting. These automated processes are expected to reduce operational costs while improving accuracy and compliance with regulatory requirements.
The tokenization also opens up new possibilities for fund structuring and investor access, potentially allowing for smaller minimum investments and more flexible redemption terms. This democratization of access could significantly expand the potential investor base for SkyBridge’s hedge fund strategies.
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The market impact of SkyBridge’s tokenization initiative extends beyond the immediate $300 million in assets, as it validates the institutional viability of blockchain-based asset management and could accelerate adoption among other hedge funds and asset managers. This development strengthens Avalanche’s position as a preferred blockchain for institutional applications and may drive increased demand for AVAX tokens as the network scales to accommodate more institutional use cases.
- Tokenization
- The process of converting real-world assets into digital tokens on a blockchain. These tokens represent ownership rights and can be traded, transferred, or used as collateral in decentralized finance applications.
- ERC-3643
- A tokenization standard specifically designed for compliant securities on blockchain networks. It includes built-in compliance features that ensure regulatory requirements are met automatically through smart contract functionality.
- Avalanche Consensus
- A novel consensus mechanism that enables high throughput and near-instant finality for blockchain transactions. It allows the network to process thousands of transactions per second while maintaining decentralization and security.
- Smart Contracts
- Self-executing contracts with terms directly written into code on a blockchain. They automatically execute when predetermined conditions are met, eliminating the need for intermediaries in many financial transactions.
- Subnet
- A sovereign blockchain network that runs on the Avalanche platform with customizable virtual machines and consensus mechanisms. Subnets allow organizations to create tailored blockchain environments for specific use cases while benefiting from Avalanche’s security.
