With the planned launch in Q1 2024, Libre’s founder Dr. Avtar Sehra said the protocol would expand its business offerings in the future to include services such as collateralized lending and automated rebalancing of private investment portfolios.
WebN Group, a fintech and Web3 incubation hub, in collaboration with Nomura-backed Laser Digital, has unveiled Libre, a fund tokenization protocol for asset managers and wealth advisors.
According to an announcement, the companies are launching Libre to unlock broader distribution capabilities for financial services companies and wealth advisors by safely and securely streamlining legal, regulatory, and operational workflows.
Libre Scheduled for Debut in Q1
Libre was developed with the Polygon Chain Development Kit (CDK). This toolkit enables the creation of zero knowledge-powered layer 2 blockchains on the Ethereum network, chosen for its scalability and security.
“We are thrilled to see Libre select Polygon CDK’s scalability and security to revolutionize the alternative investments space. Libre demonstrates the immense potential of blockchain technology to unlock new opportunities for investors globally,” said Polygon’s co-founder Sandeep Nailwal.
Aside from Libre, other blockchain projects such as OKX, Astar, Canto, Gnosis Pay, Immutable, Palm Network, and IDEX are either using or exploring the use of Polygon’s CDK to design and launch ZK L2s on Ethereum.
However, as a fund tokenization platform, Libre allows regulated institutions to create and issue tokenized assets, ensuring legal and regulatory compliance with automated lifecycle management.
The protocol is scheduled for its official debut this year before the end of the first quarter (Q1).
Libre to Expand Its Business Offerings
With the planned launch in Q1 2024, Libre’s founder Dr. Avtar Sehra said the protocol would expand its business offerings in the future to include services such as collateralized lending and automated rebalancing of private investment portfolios.
“While our MVP objective is to increase AUM by launching the primary issuance service and driving distributor integrations, we are also working closely with our partners and clients on our 2024 product roadmap, which includes collateralized lending and automated portfolio rebalancing – building the future of wealth APIs,” Sehra said.
He further stated that in the long run, the asset tokenization platform will significantly reduce operational costs to nearly zero, which currently averages around 100 basis points for alternative assets.
According to him, the ultimate goal is to generate revenue through the protocol, primarily driven by value-added web services such as collateralized lending and secondary transfers.
Brevan Howard and Hamilton Lane Pioneer Libre Adoption
Investment management companies such as Brevan Howard and Hamilton Lane are poised to become the inaugural issuers on Libre. The latest developments come amidst increased interest in harnessing blockchain technology to advance the distribution and accessibility of alternative asset funds.
Victor Jung, the head of digital assets at Hamilton Lane, expressed optimism about the transformative potential of tokenization in revolutionizing investment management and trading. According to him, the company sees collaborations with leading firms like Libre as strategic steps to improve compliance and streamline access to private markets.
On the other hand, Brevan Howard’s head of strategy Natalie Smith echoed the same sentiment, emphasizing the significance of fund tokenization.
Smith highlighted how this approach provides investors with a novel means of accessing strategies, offering increased flexibility while advancing the platform to cater to evolving client needs.
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