ARK Invest Partners with Securitize to Tokenize Venture Fund on Ethereum
(6 days ago) · 1 source · Summarized by CryptoBipto
ARK Invest has partnered with Securitize to place a venture fund on the Ethereum blockchain. The tokenized fund reportedly does not offer investors easy redemption options, meaning liquidity remains restricted despite the use of blockchain technology.
WHY IT MATTERS
Tokenization is the process of turning ownership of something — like shares in a fund — into digital tokens on a blockchain. Think of it like converting a paper stock certificate into a digital record that lives on a shared, transparent ledger. ARK Invest putting a venture fund on Ethereum is an example of traditional finance experimenting with blockchain technology. However, just because something is on a blockchain does not mean you can cash out whenever you want. A venture fund is like a group investment where everyone pools money to invest in startups, and typically your money is locked up for several years. The blockchain part may make the bookkeeping more efficient, but the rules about when you can get your money back are still set by the fund itself, not by the technology.
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