L2 Capital Plans $500 Million Tokenization of Tech Holdings

Hong Kong investment firm L2 Capital is planning to tokenize $500 million worth of its late-stage technology and artificial intelligence holdings. The process will utilize a new platform developed by blockchain firm Newton Labs.

L2 Capital aims to complete the tokenization within 24 months of the platform's launch. Newton Labs' platform is designed to tokenize assets from both private and public markets. Access will be restricted to eligible institutional and professional investors in licensed jurisdictions.

The platform will enable investors to hold these positions on-chain and use them as collateral in permitted decentralized finance lending markets. Newton Labs emphasizes that the platform will verify every supported transfer, loan, or other action against a fund manager's rules before settlement, rather than relying solely on checks at issuance or wallet whitelists.

In Hong Kong, the Securities and Futures Commission (SFC) treats security tokens as securities under existing regulations and has issued guidance for licensed intermediaries handling tokenized securities, ensuring compliance within the sector.