Crypto will play a critical role in the next evolution in private equity investing.
We see three (3) main reasons why Allocation’s clients are asking for the ability to invest with crypto:
- Crypto provides a faster and frictionless alternative to traditional payment networks
- Crypto as a mode of settlement is growing in popularity
- Global startups want to raise capital from global investors, regardless of their location or currency
And it’s not just our clients that are asking for this ...
Fund managers around the world are begging to integrate crypto into their investment process. Why?
Because the current process is clunky, time-consuming, and location-constrained. Sending a wire from outside the US can take several days, even weeks in some cases. That’s too long.
At Allocations, we aim to make the investment process easy and accessible for a new class of investors.
On that note, we are pleased to announce …
1. You can now invest with crypto on Allocations
Investors — at home or abroad — can now send investments to fund managers without a bank account.
For our fund managers — above all else — this saves you time. Instead of waiting several days for a wire to come through, your investors can now choose to “Send crypto”, eliminating the wait for the traditional banking process.
This is possible because we’ve integrated USDC payments into Allocations. You can think of USDC as “digital dollars.”
USDC is backed by cash and equivalents, as well as short-duration U.S. Treasuries. In other words, it’s always redeemable for US Dollars. This makes USDC a stablecoin; it’s not a speculative asset that moves up and down like other notable crypto currencies like Bitcoin or Ethereum.
2. Fast, frictionless, global investments
There are 3 reasons why “Invest with Crypto” is a game changer for fund managers with international investors:
- Faster transactions
- Frictionless experience
- Borderless investments
No more waiting several days for wires to go through or for a financial institution to set up a new account. Instead of working through the ACH, a bank, or other financial institution, your investors can “Send crypto” on Allocations.
In a matter of minutes, your funds will arrive in your digital wallet.
International investors face many hurdles trying to invest their capital:
- Setting up new bank accounts can take days or weeks
- Compliance issues
- Frozen accounts
just to name a few.
But international investors can avoid these hurdles by investing with crypto.
This significantly improves their investment experience and saves you, the fund manager, valuable time during the deal process.
Investors don’t need USD or other country-specific currency to invest in an SPV or fund on Allocations.
USDC is a global currency that is secure and can be exchanged instantly.
People trust USDC, sending and receiving billions of USDC per day across exchanges covering 180+ countries.
3. Simple and seamless client experience
On Allocations, investing with crypto is simple for investors and fund managers.
For investors, you can now choose to wire funds or send crypto when you’re ready to invest in a deal.
For fund managers, all you have to do is opt-in to accepting crypto as payment when you’re building a new deal.
4. Empower your clients to invest with crypto
10,000+ investors and fund managers use Allocations to build, onboard and close their funds.
Disclaimer: The information provided in this document does not, and is not intended to, constitute legal, tax, investment, or accounting advice; instead, all information, content, and materials available are for general informational or educational purposes only and it represents the personal view of the author. Please consult with your own legal, accounting or tax professionals.