Apollo and Hamilton Lane begin using Figure’s Digital Fund Services
Figure Technologies, Inc. announced that leading asset managers Apollo and Hamilton Lane have launched digitally native investment vehicles using Figure’s Digital Fund Services (“DFS”). The DFS platform supports on-chain fund subscriptions as well as ongoing fund operations and administration.
In using Figure DFS, asset managers seek to capitalize on the opportunity for increased accessibility and digital onboarding, liquidity through a digital marketplace, and real-time digitalization of operations. Some of these enhancements streamline intermediary processes which can reduce inefficiencies, friction and risk. Further, investors can benefit from Universal Passporting, whereby an anonymized record of verified KYC credentials can be stored on-chain for use across multiple funds. Post-close, capital calls and distributions are also managed on-chain to reduce the operational burdens associated with fund cash management.
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“We are proud to work with such industry leaders to drive the adoption of blockchain in financial services. These early movers understand the ease of access, cost transparency, and efficiencies found while leveraging this technology. We look forward to continuing to uncap the blockchain potential in the financial services industry,” said Figure CEO Mike Cagney.
The digital-native funds and DFS will leverage the Provenance Blockchain. Purpose-built for financial services, Provenance is the leading public blockchain transforming finance by enabling institutions and fintechs to seamlessly and securely issue, transact, and service digitally-native financial assets at scale. Currently leveraged by more than 60 financial services firms, Provenance has supported over $12B in transactions
Provenance is the leading financial services public blockchain and ecosystem. Currently used by more than 50 financial institutions, fintechs and DeFi brands, Provenance has supported over $10B in transactions.
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DFS clients can also leverage Figure’s alternative trading system (“ATS”) for secondary transactions of blockchain-based fund interests, offering investors the opportunity for improved liquidity. Figure’s ATS provides a limit order book facilitating transparent and cost-effective transactions in private company securities and fund interests using smart contracts built on Provenance.
“At Apollo, we are harnessing innovative financial technology to solve our most pressing business challenges,” said Jamey Lamanna, Partner and Chief Information Officer at Apollo. “Through our strategic collaboration with Figure, we’re excited to continue applying blockchain technology to create scalable solutions across the investment lifecycle.”
“We are thrilled to be partnering with Figure to offer another digital-first means for investors to access the private markets. Hamilton Lane was one of the earliest major private markets firms to tokenize a fund, and we remain committed to identifying innovative technology solutions as a means of solving for some of the traditional pain points in the asset class,” Victor Jung, Head of Digital Assets at Hamilton Lane noted in a press release last month.
With this announcement, Figure adds 14 digitally native funds and SPVs to its DFS platform. Figure will continue to work with industry participants and the managed fund community to best leverage blockchain technology across all fund types and life cycles.
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