Schroders acquires stake in digital asset company Forteus
Another agreement confirms the growing interest of institutional investors in blockchain technology.
Image source: Peter Harrison, Schroders
Another established institutional investor has entered the blockchain world, with Schroders taking a stake in Forteus, a Swiss-based digital asset manager.
Schroders said the deal is part of its broader strategy to build its expertise in the industry as well as its future plans for implementing “tokenization.”
Tokenization is a type of solution that splits ownership of an asset, such as real estate or art, into digital tokens.
Much like a casino chip, a token is a representation of a “real” store of value.
The exact size of the deal was not disclosed, other than it was a minority stake.
Forteus, founded in 2021 only, says it is poised to offer custom portfolios from external managers, yield generation and actively managed thematic portfolios.
Schroders said it will offer these features to its own customers once they are fully rolled out.
Forteus resides in the Swiss city of Zug, which has been dubbed “Crypto Valley” by Swiss marketers and apparently has more than 433 start-ups in the space, half of the country’s overall total.
The company’s management team includes Cyrill Tröndle, former CEO of Swiss Crypto Exchange SCX and Nobel Gulati, former CEO of Two Sigma Advisers.
Peter Harrison, Group CEO at Schroders, said: “Blockchain will be a catalyst for fundamental change within asset management, financial services generally and many other industries more broadly. »
He added: “It not only has the potential to transform the effectiveness of existing solutions, but it will lead to the democratization of private assets; it represents a new frontier of technological and financial innovation.
Despite the ongoing “crypto winter,” blockchain startups raised a record $9.2 billion in the first three months of 2022, according to data from CB Insights.
A prime example of this institutional interest is Silicon Valley VC Andreessen Horowitz (A16Z), who announced that his fourth crypto fund raised $4.5 billion in May.
This isn’t the only asset manager acquisition Schroders has made in the past year, the company took a 75% stake in sustainability-focused investment manager Greencoat Capital in April this year. .