Firms Combine for Web3 Infrastructure for Fund Distribution
Posted by Colin Lambert. Last updated: January 10, 2024
Nomura-backed Laser Digital and WebN have announced the launch of Libre, an institutional Web3 infrastructure for the distribution of alternative asset funds powered by Polygon, with Brevan Howard and private markets investment management firm Hamilton Lane planning to be the first issuers to strategically partner with the initiative.
The firms say Libre is an institutional Web3 protocol, designed for the legal and regulatory compliant issuance and automated lifecycle management of alternative investments. It unlocks broader distribution capabilities for asset managers and wealth advisors with the aim to safely and securely streamline legal, regulatory, and operational workflows.
Using tokenisation and smart contracts, they add Libre enables efficient investment execution and lifecycle management, as well as scalable provisioning of value-add services such as collateralised lending and automated rebalancing of separately managed accounts (SMAs).
The new platform is scheduled to go live during the first quarter of 2024 and has already partnered with what the firms describe as “several tier one global distributors”. Access for distributors is simplified through API connectivity, which enables integration into Libre’s suite of wealth management services, data and infrastructure.
Libre’s founder, Dr. Avtar Sehra, has been named as CEO, he pioneered early work in securities tokenisation and real world assets (RWAs) starting in 2014 – initially on Bitcoin and then on Ethereum; and previously founded Nivaura, claimed to be the first tokenisation and workflow automation platform with broker-dealer and custody licences from the FCA. He says, “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 collateralised lending and automated portfolio rebalancing – building the future of wealth APIs.”
Libre suggests that Brevan Howard and Hamilton Lane agreeing to strategically partner with Libre marks “a significant milestone for the alternative investments industry, which has seen growing interest in leveraging blockchain technology to improve access to alternatives”.
Dr. Jez Mohideen, CEO at Laser Digital, says, “Laser Digital is dedicated to delivering secure
and compliant digital asset products and infrastructure for institutional users. We firmly
believe that Libre’s ground-breaking approach to tokenised funds holds the potential to greatly boost investor confidence and foster increased adoption of blockchain technology and tokenisation within the alternative investments industry and across broader capital markets.”
Meanwhile, Natalie Smith, head of strategy and client partnerships group at Brevan Howard, explains, “The tokenisation of funds allows us to offer investors a new way to access our strategies, providing them with optionality, and further develops our platform to serve client needs. It is for this reason that we have been deeply involved in Libre.”