Polygon Set To Power The First TradFi-Focused Ethereum Layer-2

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Polygon Labs has unveiled the Libre Chain, a protocol powered by the Polygon CDK and backed by the biggest names in institutional blockchain adoption. 

The Libre Chain will ensure unparalleled access to global alternative investment funds and offer broader distribution capabilities for asset managers. 

Introducing Libre 

Polygon unveiled the Libre Chain in a post on X on the 10th of January. The Libre Chain is a protocol powered by the Polygon CDK and backed by some of the biggest names in institutional blockchain adoption. In the post, Polygon asserted that the “Institutions have arrived on Polygon.” 

“The institutions have arrived on Polygon CDK. For the first time, a financial institution-focused L2 is being built, settling to Ethereum. Introducing Libre, an institutional web3 infrastructure for the distribution of alternative asset funds, launched by WebN and @LaserDigital. Built with Polygon CDK, the Libre chain will focus on the issuance and distribution of tokenized assets, leveraging the security of Ethereum. The platform will unlock broader distribution capabilities for asset managers and wealth advisors and enable unparalleled access to alternative investment funds for a broader pool of investors.”

Libre Backers

Libre boasts of some of the biggest names in institutional blockchain adoption. These include a subsidiary of Japan’s largest investment bank, Nomura Group, called Laser Digital, WebN Group, an incubation hub with the backing of alternative investment giant Brevan Howard and founder Brevan Howard. It also boasts of the backing of Hamilton Lane and Avtar Sehra. Sehra is one of the pioneers of tokenization and is well known for his work with Nivaura. The project has been credited with bringing tokenization to Bitcoin and Ethereum at a time when most argued that tokenization would be restricted to private blockchains. 

According to Polygon, the Libre Chain will empower regulated institutions to tokenize and issue alternative investments, enabling broader distribution for asset managers. 

“Libre is designed for the legal and regulatory compliant issuance and automated lifecycle management of alternative investments. It empowers regulated institutions globally to create and issue their own on-chain tokenized assets.”

The Ethereum Layer-2 chain will go live in Q1 2024, with Brevan Howard and Hamilton Lane becoming the first to partner with Libre strategically. The team is also working on adding services such as collateralized lending and automated rebalancing of separately managed accounts. CEO and founder of Libre, Avtar Sehra, stated, 

“It’s been an honor working with some of the most respected institutions in the traditional finance and Web3 space on bringing the Libre vision to life. While our MVP objective is to increase AUM by launching the primary issuance service and driving distributor integrations, we are also working closely with our partners and clients on our 2024 product roadmap, which includes collateralized lending and automated portfolio rebalancing – building the future of wealth APIs.”

Unlocking New Investment Opportunities 

Speaking about the developments, Polygon co-founder Sandeep Nailwal stated he was delighted to see Libre select Polygon CDK’s scalability and security, hailing the project’s potential to unlock new investment opportunities. 

“We are thrilled to see Libre select Polygon CDK’s scalability and security to revolutionize the alternative investments space. Libre demonstrates the immense potential of blockchain technology to unlock new opportunities for investors globally.”

After the Libre Chain announcement, Polygon Labs CEO Marc Boiron asserted that Polygon CDK was the real home for bringing institutional assets on-chain. Libre becomes the latest edition to Polygon’s growing multichain ecosystem. Other projects include OKX, Palm Network, and Flipkart. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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