Recently, asset management firm Hamilton Lane took a step that further underscored the growing integration of traditional finance (TradFi) and the burgeoning blockchain industry. Hamilton Lane, with $920 billion in assets under management (AUM), announced the launch of a private credit fund on the Solana blockchain.
Hamilton Lane partners with Libre
This means that clients who are interested in the fund, dubbed Senior Credit Opportunities Fund (SCOPE), can get access through the Solana network. Noteworthy, this is not the asset manager’s first foray into the blockchain ecosystem. However, it is the first institutional fund launched directly on Solana.
$920bil asset manager Hamilton Lane launched a private credit fund on solana this week…
$920bil asset manager.
Private credit fund on solana.
Paying attention yet?
via @staffordphilip pic.twitter.com/izj2XynXsM
— Nate Geraci (@NateGeraci) July 26, 2024
The asset manager achieved this feat through a collaboration with Libre, a Web3.0 protocol for the issuance and distribution of funds on-chain. According to Libre’s CEO and founder, Dr. Avtar Sehra, tokenizing SCOPE provides the opportunity for Hamilton Lane to deepen its distribution by accessing “mass affluent, crypto native.”
Hamilton Lane will leverage Libre’s backbone infrastructure that links tokenized real world assets (RWAs) to users.
It allows accredited, professional and institutional investors on networks like Solana to gain direct access to “top-tier funds on-chain in a fully compliant manner as well as ancillary services for secondary trading and collateralized lending, where available,” per a joint statement from the companies.
Solana ETFs to come in March 2025
Sehra acknowledged Solana’s “low latency and throughput capability,” citing that these features make it a compelling network for tokenization. It is worth noting that this latest development could position Solana on a new plane. The United States Securities and Exchange Commission’s (SEC) approval for spot Ethereum ETFs in May came with a glint of hope for other altcoins.
Crypto enthusiasts began to perceive the leniency to go beyond Ethereum with clamor for spot Solana ETFs. VanEck took the cue and filed for Solana ETF with the SEC. The New York-based investment firm wants to provide direct exposure to SOL without the risks associated with the crypto.
In a few weeks, 21Shares also made the same move with a similar filing. The latest move from Hamilton Lane gives Solana more precedence and could compel the securities regulator to consider the proposed rule change. If this is the case, a spot Solana ETF approval would likely come in March 2025.
