- Hamilton Lane is set to provide part of its Senior Credit Opportunities Fund (SCOPE) through Securitize, which taps into the Polygon network.
- Investors in the SCOPE feeder fund can redeem their shares on demand through the Polygon network, and with no transaction fees from Securitize.
Polygon (MATIC), a leading Ethereum scaling solution with about $1.02 billion in total value locked (TVL), has continued to attract more institutional investors seeking to scale through the decentralized financial markets. The layer 2 scaling solution, which is backed by Binance and Coinbase, has grown to a $10 billion market despite the effects of the 2022 bear market. Thereby indicating Polygon network has over time attracted long-term investors seeking to tap into blockchain technology.
Polygon Meets Securitize Needs
In recent developments, Polygon Network announced a strategic partnership with Securitize, a firm digitizing trading of real-world assets. Through the partnership, Securitize is set to launch a tokenized private credit fund from a leading private markets investment firm, Hamilton Lane (Nasdaq: HLNE). Reportedly, Hamilton Lane is set to provide part of its Senior Credit Opportunities Fund (SCOPE) through Securitize, which taps into the Polygon network. Meanwhile, the fund has ostensibly reduced its minimum investment from $2 million to $10k to attract more single investors.
Carlos Domingo, CEO of Securitize Inc. noted:
Smart contracts built on blockchain networks can dramatically accelerate previously manual processes–such as share redemption–from weeks to seconds, eliminate intermediaries and their unnecessary fees, and ultimately reduce barriers for more investors to participate in the value being created in the private markets.
As the partnership improves the funds’ liquidity, the $96 million private credit fund is set to increase the overall Polygon’s credibility to other institutional investors. Moreover, Hamilton Lane has been in existence for more than a decade and has been trusted by many investors.
.@Securitize launches a tokenized feeder fund, w/ exposure to a @hamilton_lane $96M private credit fund #onPolygon ✨
Building on January's flagship launch, SCOPE is further broadening access to unlock the value created in private markets 👏🏾
More: https://t.co/V9ovORphSc pic.twitter.com/VaupHdo6Qe
— Polygon (Labs) (@0xPolygonLabs) May 4, 2023
Onwards, investors in the SCOPE feeder fund can redeem their shares on demand through the Polygon network, and with no transaction fees from Securitize.
“Hamilton Lane is committed to investing in and adopting transformational solutions with an aim to deliver best-in-class services to investors looking to access the private markets while increasing usability and transparency through the use of blockchain technology,” Victor Jung, Head of Digital Assets at Hamilton Lane, noted.
Nayef Perry, Co-Head of Direct Credit at Hamilton Lane, noted that the partnership will help the fund reach out to more investors with enhanced liquidity and transparency. Colin Butler, Global Head of Institutional Capital at Polygon Labs, noted;
Reducing the threshold for participation levels the playing field for individuals — democratizing access to private equity and opening the fund up to a more diverse range of investors,
MATIC Price Outlook
Trading around $1 on Friday, Polygon MATIC has rallied more than 31,573 percent from its all-time low. Nevertheless, MATIC price has consolidated around the same level, having not gone parabolic Dogecoin or Shiba Inu. As a result, the token has immense potential for higher gains in the future in regard to diminishing returns.
