Securitize to Issue Digital Asset Securities for Yield Funds

Securitize will issue digital asset securities for two inaugural yield funds holding BTC and USDC separately.

May 27, 2021 at 2:50 p.m. UTC
Updated Sep 14, 2021 at 1:03 p.m. UTC

Securitize, a digital asset securities firm, has launched two crypto security yield funds: one based on bitcoin (BTC) and the other denominated in the stablecoin USDC. The funds will be open for participation in early June and will be issued as digital asset securities on the Algorand blockchain.

Both funds are intended to provide accredited investors with exposure to cryptocurrencies and decentralized finance (DeFi) in a less complicated way, according to the company’s press release.

“In the last couple of years in the world of crypto there’s been a tremendous movement around DeFi and yield generation strategies,” said Carlos Domingo, CEO of Securities, during a "First Mover" interview on CoinDesk TV on Thursday.

Securitize partnered with Genesis Trading and Anchorage, which operate lending desks that regularly lend and borrow cryptocurrencies. Securitize Capital, a wholly owned subsidiary of Securitize, will manage both funds.

“We will get inflow of money into the fund in fiat currency, convert into USDC or BTC and lend back to Genesis and Anchorage and collect yield,” said Domingo.

The Securitize Capital BTC Yield Fund will "offer investors exposure to BTC with a 2% annualized yield and the amount of bitcoin the fund contains grows 2% over the year,” said Domingo.

The USDC Yield Fund will offer a much higher yield of 6% to 8% annually. And both funds will have a management fee of 0.50%.

For now, both yield funds will be available to accredited and qualified investors such as high-net-worth individuals and family offices.

“To be able to sell to retail requires a lengthy regulatory process,” said Domingo. “We want to get a sense of appetite for the funds before we invest time and money to make it available for retail.”

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