Securitize has announced two yield funds one for Bitcoin and the other for USDC. The funds are managed by Securitize’s subsidiary, Securitize Capital, LLC, and offered through Securitize Markets, LLC, which is an SEC-registered broker-dealer.
According to a release, the fund is recorded on the Algorand blockchain, with Securitize serving as the transfer agent. The funds are administered by Sudrania Fund Services Corporation, audited by Spicer Jeffries, with yield generated via a partnership with Genesis Trading and Anchorage Digital.
Investors will generate yield from cryptocurrencies, which are loaned to other investors.
Carlos Domingo, CEO of Securitize, stated:
“Securitize’s Bitcoin and USD Coin funds are intended to provide investors with direct exposure to cryptocurrencies, with higher yields and lower fees than other funds currently available on the market. We believe that digital asset securities, also referred to as security tokens, are a fundamentally better way to facilitate and record investments. We have long recognized the importance of working with regulators to build a future where investors feel confident in the digitization of assets and these regulated funds are an important step toward that future.”
The funds are open to accredited investors, family offices, etc. The fee structure is a management charge of 0.05%.
Jamie Finn, Securitize President and principal for the funds, explained that investing in the lending of cryptocurrencies is very attractive because supplies are limited, so they can be lent out in exchange for healthy yields. But Finn noted current offerings have drawbacks, such as a cumbersome enrollment process or the high risk in turning your money over to unregulated operators:
“The Securitize yield funds give investors exposure to cryptocurrency and yield, in the form of a regulated security. Interested investors can simply create an online Securitize iD account to begin investing and tracking their investments.”
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