Key Takeaways
- • JellyC, a local Australian digital asset manager, announced a partnership with liquidity provider Liquidise and the Redbelly Network to tokenise its suite of funds, offering investors real-time net asset value unit pricing and on-chain ownership auditability.
- • Redbelly Network, developed at the University of Sydney with CSIRO, uses a KYC process for all network users and issues verified credentials, which JellyC says will ensure counterparties know exactly who they are dealing with for compliance purposes.
- • Global X strategist Marc Jocum says tokenisation could cut intermediaries, settlement times and administrative costs, but flags unresolved issues around ownership structure, dividend eligibility and taxation.
- • A report by DECA, DFCRC and Ripple estimates tokenisation of real-world assets could deliver $12 billion annually in efficiencies for Australia, with global gains of around $2 trillion per annum, while regulatory barriers risk delaying progress.
- • The report recommends a clear digital asset taxonomy, licensing reform and a regulatory sandbox to support tokenisation in Australia.
Summary
Local digital asset manager JellyC has announced a partnership that will enable the tokenisation of its suite of funds, which the firm says will give investors "unprecedented access to liquidity, transparency and compliance." According to the firm, the arrangement involves liquidity solutions provider Liquidise and the Redbelly Network, which it describes as the "world's first formally verified blockchain." JellyC says the resulting product will be a fully liquid and compliant tokenised fund offering real-time net asset value unit pricing and full transparency and auditability over ownership.
JellyC co-founder Michael Prendiville said the move would pave the way for mainstream adoption of tokenised funds in the asset management sector. Under the agreement, JellyC will use the Redbelly Network's KYC-verified user framework, in which all participants undergo know-your-customer checks and are issued verified credentials. Alan Burt, chairman of Redbelly Network, said the platform's composable compliance and instant finality could bring greater transparency, trust and efficiency to the management and trading of private equity and venture capital funds.
Global X investment strategist Marc Jocum, speaking to InvestorDaily, said tokenisation could reduce reliance on intermediaries and shorten settlement times, citing the T+2 cycle for ASX-listed shares as an example. He also noted that tokenised assets can be traded globally at any time, while cautioning that excessive trading generally dampens investing outcomes. Jocum acknowledged unresolved questions around ownership structure, dividend eligibility and taxation, and said Australian managers face regulatory uncertainty, infrastructure hurdles and potential liquidity fragmentation that could lead to pricing discrepancies during volatility. He cited the controversial ASX CHESS replacement as an illustration of the difficulty of moving entrenched systems to distributed ledgers.
The article notes that BlackRock launched its first tokenised fund on a public blockchain last March, which Jocum described as one of the largest blockchain-based money market funds, backed by short-term US Treasuries. A report published late last year by the Digital Economy Council of Australia (DECA), the Digital Finance Cooperative Research Centre (DFCRC) and Ripple estimated that tokenisation of real-world assets could deliver $12 billion annually in efficiencies for Australia's financial markets, while Australia risks losing its share of global gains estimated at around $2 trillion per annum. The report recommended a clear taxonomy for digital assets, reform of licensing frameworks for digital asset markets, and a regulatory sandbox, warning that regulatory barriers could delay progress as other nations advance.
JellyC co-founder Michael Prendiville said the move would pave the way for mainstream adoption of tokenised funds in the asset management sector. Under the agreement, JellyC will use the Redbelly Network's KYC-verified user framework, in which all participants undergo know-your-customer checks and are issued verified credentials. Alan Burt, chairman of Redbelly Network, said the platform's composable compliance and instant finality could bring greater transparency, trust and efficiency to the management and trading of private equity and venture capital funds.
Global X investment strategist Marc Jocum, speaking to InvestorDaily, said tokenisation could reduce reliance on intermediaries and shorten settlement times, citing the T+2 cycle for ASX-listed shares as an example. He also noted that tokenised assets can be traded globally at any time, while cautioning that excessive trading generally dampens investing outcomes. Jocum acknowledged unresolved questions around ownership structure, dividend eligibility and taxation, and said Australian managers face regulatory uncertainty, infrastructure hurdles and potential liquidity fragmentation that could lead to pricing discrepancies during volatility. He cited the controversial ASX CHESS replacement as an illustration of the difficulty of moving entrenched systems to distributed ledgers.
The article notes that BlackRock launched its first tokenised fund on a public blockchain last March, which Jocum described as one of the largest blockchain-based money market funds, backed by short-term US Treasuries. A report published late last year by the Digital Economy Council of Australia (DECA), the Digital Finance Cooperative Research Centre (DFCRC) and Ripple estimated that tokenisation of real-world assets could deliver $12 billion annually in efficiencies for Australia's financial markets, while Australia risks losing its share of global gains estimated at around $2 trillion per annum. The report recommended a clear taxonomy for digital assets, reform of licensing frameworks for digital asset markets, and a regulatory sandbox, warning that regulatory barriers could delay progress as other nations advance.
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