- Tokenize 300 million on Avalanche, about 10% of AUM
- Two funds: crypto not deemed securities and a fund of funds
- Partner Tokeny; Avalanche near 2 billion in assets; timeline 2026–2027
The move to bring traditional assets on chain is progressing. SkyBridge Capital will place roughly $300 million from two funds into tokenized formats, allocating about 10% of its assets under management to blockchain-based representations. The plan targets a 2026–2027 window as a key period for real-world asset tokenization across capital markets.
SkyBridge Capital $300M tokenization plan
The firm will tokenize two vehicles and issue investor interests as digital tokens. One vehicle focuses on crypto assets such as Bitcoin that have not been classified as securities by the U.S. Securities and Exchange Commission in the firm’s disclosures. The second is a fund of funds that aggregates exposure to the firm’s other strategies, including venture and crypto funds. Together they account for approximately $300 million, a figure positioned as around one-tenth of overall assets, signaling a measured but material step rather than a pilot of negligible size.
Timeline: 2026–2027 and the rise of real-world tokenization
Management has framed 2026 to 2027 as a period when tokenized representations of off-chain instruments become routine. The expectation is that issuance, transfer, and record-keeping for assets like Treasury bills and fund shares will shift to programmable ledgers. This framing highlights a staging period in which legal documentation, KYC/AML workflows, and qualified custody integrate with on-chain rails, moving beyond small experiments toward common practice.
SkyBridge Capital fund structure and asset scope
The first fund’s mandate concentrates on crypto assets already native to blockchains and not deemed securities by the regulator, aiming to reduce classification ambiguity at issuance. The second vehicle is a fund of funds composed of the firm’s internal products, mixing venture positions with digital asset exposure. Tokenization here refers to creating a ledger-native claim that maps to the underlying partnership interests, allowing compliant transfer subject to whitelists and investor eligibility checks.
How tokenized funds reduce fees and intermediaries
In a conventional private fund subscription, multiple intermediaries verify identity, source of funds, and ownership and reconcile books across administrators, custodians, and brokers. Each step adds fees and time. With on-chain issuance, transfer restrictions, investor accreditation, and cap-table rules can be expressed as code that executes at settlement. The ledger serves as a tamper-resistant record of ownership, and investors can verify their holdings directly. The aim is not to eliminate compliance but to embed it, reducing manual reviews, repeated reconciliations, and wire-based settlement delays.
Industry context: BlackRock, Franklin Templeton, and VanEck pilots
Large managers have already placed money-market or short-duration instruments on public networks. Recent launches include tokenized funds on Solana and Aptos. These products issue blockchain-native shares that represent claims on off-chain portfolios, mirroring the daily liquidity and custody rules of the underlying vehicles while adding programmable settlement. The pattern is consistent: start with cash-like instruments and expand to other fund structures as operational guardrails mature.
SkyBridge Capital and Avalanche: network selection and scale
Issuance will occur on Avalanche, a public blockchain with a design that supports application-specific subnets and low-latency finality. According to aggregator data, assets deployed across its decentralized finance ecosystem are near the $2 billion mark, indicating a live, if smaller, environment compared with older networks. For an asset manager, the practical appeal includes faster block times for primary issuance events, EVM compatibility for auditability, and customized subnets if regulatory requirements call for gated environments.
Partner profile: Tokeny and on-chain issuance
Tokeny will support the digital issuance workflow. The firm focuses on permissioned token standards that encode eligibility rules, transfer restrictions, and registry functions directly into the token contract. In practice, this means subscriptions can settle on chain only when the wallet address is whitelisted and transfer conditions are met, aligning token movement with the fund’s legal documents and investor onboarding status.
Operational mechanics: settlement, ownership, and verification
When an investor subscribes, identity and eligibility checks lead to a whitelisted address that receives the tokenized interest. Subsequent transfers honor lock-ups, jurisdictional blocks, and investor categories embedded in the contract. The ledger acts as the source of truth for cap-table changes, and administrators reconcile off-chain records to the same state root. Investors can independently view token balances on chain, reducing back-and-forth with fund administrators and removing reliance on emailed spreadsheets for ownership proof.
SkyBridge Capital and compliance considerations
Using a public network does not remove regulatory obligations. Transfer restrictions must reflect securities laws and offering documents. The vehicle investing in assets like Bitcoin that are not deemed securities reduces classification friction at the asset level, while the fund of funds requires careful mapping between partnership terms and token behavior. Audit trails are strengthened by on-chain transparency, but privacy must be preserved through permissioned views and selective disclosures. Qualified custody, valuation policies, and investor reporting continue, even as the ledger becomes the canonical registry.
Cost drivers: fees, middle layers, and timing
Primary and secondary transactions in private funds often involve multiple fee layers and settlement cycles measured in days. On-chain transfers can execute in seconds with deterministic finality fees. Smart-contract-driven compliance reduces the need for repeated manual checks across intermediaries. Banking wires give way to token settlement, cutting operational overhead and reducing errors from mismatched instructions. For redemptions in cash-equivalent strategies, token burn and off-chain payout can be linked through automated workflows.
Risks and open questions for real-world assets
Tokenization remains early. Legal recognition of on-chain registries varies by jurisdiction. Secondary liquidity depends on compliant venues that admit only eligible holders. Key management and wallet recovery are non-trivial for institutions and individuals. Valuation must match the underlying, avoiding divergence between token price and net asset value. Data-oracle dependencies and corporate actions need predictable playbooks. These risks are manageable with clear operating procedures but require sustained governance and vendor discipline.
What investors can expect between now and 2027
The near term is likely to focus on cash-like instruments and straightforward fund interests, where transfer rules are simple and valuation is transparent. As more managers follow BlackRock, Franklin Templeton, and VanEck in putting money-market and short-duration strategies on chain, interoperability standards will solidify. By 2026–2027, subscribing, transferring, and redeeming tokenized fund interests may become routine for qualified investors, with settlement, cap-table updates, and reporting tied directly to ledger events rather than email and batch files.
SkyBridge Capital role in the broader shift
Allocating around $300 million and about 10% of assets to tokenized formats places the firm among managers treating on-chain issuance as a core operating path rather than a trial. Selecting Avalanche, supported by a network with close to $2 billion in deployed assets, and working with a tokenization specialist provides the infrastructure for controlled distribution and transfer. The move aligns with a trend in which fund shares and short-term instruments are issued on public networks while preserving compliance and investor protections.
Conclusion
Tokenized fund shares are moving from concept to practice. SkyBridge Capital plans to issue on Avalanche with Tokeny, starting with about $300 million across two funds, including a vehicle focused on assets like Bitcoin and a fund of funds that aggregates its strategies. The approach aims to lower transaction friction by reducing intermediaries and embedding compliance in code while keeping traditional oversight in place. As other managers place money-market products on networks such as Solana and Aptos and as on-chain assets near $2 billion on Avalanche, the foundations for broader adoption between 2026 and 2027 are taking shape.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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