Bitcoin and USD Coin Funds Issued as Regulated Digital Asset Securities
Securitize, Inc. announced the opening of its Bitcoin and USD Coin yield funds, providing investors with exposure to cryptocurrencies, which are loaned to create yield.
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The news is particularly noteworthy given recent regulatory scrutiny as to what constitutes a security and whether some crypto platforms are cutting corners by sidestepping U.S regulatory agencies. By contrast, Securitize has spent over three years working with regulators to offer digital asset securities in a regulatory compliant way.
“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,” said Carlos Domingo, CEO of Securitize. “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.”
They are currently open to, and may be particularly well-suited to, institutional, family offices and accredited investors due to their traditional security structure and compelling management fee of just 0.50%. Moreover, these offerings may play a valuable role as part of a balanced investment portfolio, whether due to the yield or as a hedge against the traditional markets (in the case of Bitcoin).
As previewed in May, the funds are managed by Securitize’s wholly-owned subsidiary, Securitize Capital, LLC, and offered through Securitize Markets, LLC, which is an SEC-registered broker-dealer, as well as member of FINRA and SIPC.
“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 current offerings have major drawbacks, such as a cumbersome enrollment process or the high risk in turning your money over to unregulated operators,” said Jamie Finn, Securitize President and principal for the funds. “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.”
Fund activity is recorded on the Algorand blockchain, with Securitize serving as the digital asset security 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.
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