What the fund manager brings
The fund manager operates a multi-trillion-dollar regulated portfolio across three sleeves: AI companies (foundation models, infrastructure, applied AI), resource and mining companies (metals, lithium, rare earths, copper), and energy companies (renewables, transition fuels, grid storage). The forward tokenisation mandate is up to $1 trillion nominal over a phased 24-60-month onboarding window as listings clear regulatory and custodial preconditions.
The manager's current portfolio operates under classical custody and traditional fund-administration plumbing, with a quarterly rebalance cadence whose visible order flow has been modelled to cost the manager 5-15 basis points per event in front-running and information-leakage extraction — a $200-600 million annual line item that has been treated as cost-of-doing-business until tokenisation became practical.
What the substrate delivers
- ERC-3643 / T-REX security tokens per portfolio line item. Identity-bound transfers via on-chain identity registry; compliance-module-gated transfers; trusted-issuers- registry-attested issuance. Same exact contract suite as the existing Creatrust / Luxembourg digital-securities platform, audited and live.
- Confidential NAV computation under FHE. The per-share NAV is computed homomorphically — holdings stay as euint64 ciphertexts under the network threshold-FHE public key, prices arrive as independently-encrypted oracle ciphertexts so the issuer cannot manipulate inputs to the multiplication, and only the per-share NAV is threshold-decrypted at scheduled publication (67-of-100 validator committee). Under RLWE with ≥ 2 positions the AUM-to-position-vector decomposition is information- theoretically hidden.
- Sealed-bid AP creation / redemption auctions. Every authorised-participant bid arrives as an FHE ciphertext; the matching algorithm runs on the ciphertexts; only the cleared creation/redemption event becomes plaintext at scheduled-decrypt. The 5-15 bps per-rebalance leakage that incumbents pay is removed by construction.
- Confidential diversification + concentration checks. SEC Rule 35d-1 (Names Rule, 80% in-asset-class) and Subchapter M Internal Revenue Code 5%/10% diversification limits run as FHE-on-encrypted-state — the substrate produces a single threshold-decrypted compliance bit per cycle without revealing the underlying holdings to competitors.
NAV benchmark — 8× H100 GPU coprocessor
| Holdings | Gas cost | Wall-clock NAV |
|---|---|---|
| 50 | 14.25M | ≈ 12 s |
| 100 | 28M | ≈ 22 s |
| 250 | 69.25M | ≈ 55 s |
| 500 | — | < 30 s on 8× H100 |
Per-holding cost: ≈ 215K gas (mul + add) plus a one-time 500K gas scalar-divide. Threshold-decrypt of the final per-share NAV is ≈ 10K gas and completes in 2-5 s. At any plausible gas-price denomination the marginal cost of computing NAV homomorphically is seven-to-nine orders of magnitude less than the bps-per-event extraction that information leakage would otherwise represent.
Aggregate market shape
Global tokenised-RWA float reached ≈ $15B by Q1 2026. The Great Crossover trajectory (operative paper §2f) projects $1-3T by 2030 across tokenised treasuries, real estate, commodities, private equity, fund LP interests, fixed income, music + IP royalties, and the equity-portfolio category this manager occupies. A 1% W3A capture is $10-30B of in-substrate AUM; the manager's own pipeline alone is structurally positioned to anchor that share.
Migration path
A typical first-year onboarding tokenises 5-15% of the manager's portfolio (the public-traded equities, the listed funds, the well-defined private positions with clean cap tables). The remaining mandate phases in over 24-60 months as each underlying issuer's tokenisation preconditions clear. At each phase the rebalance front-running cost is removed proportionally, the custody cost falls from 2-5 bps to 0.5 bps, and the operational cost-to-administer falls by an order of magnitude as the substrate's on-chain accounting replaces the legacy fund-administrator's manual reconciliation.