Wealth and asset management platform L1 announced that it launched a set of onchain investment strategies managed by hedge funds available through partnerships with Fasanara Digital, FalconX and Bastion Trading. “Onchain” means that the transactions occur directly on the blockchain of a cryptocurrency.
The firm said the platform is intended to “democratize” access to products traditionally available only to ultra-high net worth and institutional investors, and said it will add more funds to the platform soon.
L1 said its platform utilizes smart contracts and tokenization to change how investors interact with and redeem the funds. “Smart contracts” are self-executing contracts embedded directly into code. “Tokenization” is the conversion of an asset into a digital representation on the blockchain.
According to the firm, accredited investors can complete know-your-customer checks “instantly,” subscribe in minutes and receive tokenized fund shares directly in their digital wallets.
“Hedge funds have traditionally catered to those who can afford million-dollar minimums, locking out countless investors,” said Miguel Kudry, L1 CEO and Co-Founder. “By bringing strategies onchain and streamlining onboarding, custody, and operational hurdles, L1 is redefining access to high-alpha strategies, making them more accessible to a wider range of investors and the advisors who serve them.”
The firm says this platform gives users real-time visibility into fund performance.
“We’re excited to collaborate with L1 to bring sophisticated hedge fund strategies within reach of financial advisors and a new wave of investors,” said Louis Stewart, Managing Partner and Head of Technology at Fasanara Digital.
The platform also integrates privacy-preserving identity verification technology from Keyring, which the firm said reduces the risk of data breaches.
James Miller, Contributing Editor and Research Analyst at Wealth Solutions Report, can be reached at ContributingEd@wealthsolutionsreport.com.
