Apollo Global Management Launches Tokenized Asset Management Fund

Alternative investment management specialists from Apollo Global and investment firm Hamilton Lane are launching a joint blockchain platform.

The parties are planning to offer the market a new financial instrument, the movement of which will be fully committed to the public blockchain. The group plans to create a common fund and use technology known as Provenance, which acts as a single ledger for issuing and recording the movement of tokenized securities as well as derivatives between investors.

“What we have in mind is to become a systemic trend for the migration of funds to the blockchain. These are not crypto assets. But with the help of blockchain, we can get rid of intermediaries in the markets,” said the project participants.

Apollo CEO Mark Rowan assured that the tokenization of financial instruments and the launch of a new fund will not only help reduce costs, but also provide stakeholders with rich data using blockchain technology. The businessman added that the creation of the fund is in line with Apollo's strategy, which implies simpler capital requirements for issuers, as well as a return of money to sponsors. Rowan promised that in the future, Apollo is considering using stablecoins to make it easier for investors to subscribe to the issuance of securities and the subsequent distribution of funds.

In 2020, the VeChain platform joined the APAC Provenance consortium, which is dedicated to bringing blockchain and other technologies to the supply chain. At the time, Provenance had already received millions of dollars in funding for blockchain authentication and traceability pilots for food, wine, and other goods in the Asia-Pacific region.