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The Health Care Strategic Growth Fund from American investment company KKR & Co. (KKR) is now accessible on the Avalanche blockchain. KKR is collaborating with the digital asset management platform Securitize Capital, which will take care of onboarding new investors, according to a press release. Securitize Capital had $471 billion in assets under management at the end of 2021. Through a tokenized feeder fund on the Avalanche blockchain created by Securitize, anybody will be able to participate in KKR's healthcare fund. Despite a market collapse resulting in the price of Bitcoin (BTC) declining by more than 50%, traditional banking corporations are still investing in the cryptocurrency sector this year. A private blockchain was built by Wall Street clearinghouse Depository Trust & Clearing Corp. last month. In May, the venture capital company Andreessen Horowitz strengthened its position on cryptocurrencies by launching a fourth crypto fund valued at $4.5 billion.
Affordable Investment Option For Investors
According to KKR, the tokenized health care fund will provide regular investors with a more affordable investment option. In the announcement, Dan B. Parant, managing director and co-head of U.S. private wealth at KKR, stated.
"With its ability to digitize operational inefficiencies and increase ease of use for individual investors, blockchain technology has the potential to play an important role in the future of private markets."
First Firm To Use Blockchain In This Way
According to executives speaking to the WSJ, this is the first time a major private equity firm like KKR has used the blockchain for this purpose. Although the goal is to increase access to the fund, the standard is still high. The requirement for a qualified buyer of tokenized assets is that they have at least $5 million in investable assets. Additionally, interested parties must register with Securitize and generate a digital wallet. Unlike institutions, private investors can make smaller investments through the fund.