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Today, L1.co, the operating system for onchain wealth and asset management introduced an industry-first product: Onchain Separately Managed Accounts (Onchain SMAs). This next-gen investment vehicle brings the full power of decentralized finance to financial professionals and investors alike, offering a direct, programmable, and tax-efficient solution that can transform traditional asset management.
The legacy rails powering over $100 trillion in investable assets are ripe for disruption. Onchain SMAs have been designed to help bring the next wave of assets onchain by providing investors and asset managers the best of both worlds: the most popular features of traditional SMAs with the added flexibility, access, and programmability of crypto rails.
Key Features of Onchain SMAs:
- Yield-Generating: These SMAs can generate income through onchain activities like staking, lending, and market making, offering a whole new layer of returns previously inaccessible to many investors.
- Programmatically Rebalanced: Asset portfolios can be autonomously adjusted based on pre-defined strategies to ensure optimized allocation and continuous rebalancing.
- 24/7 Access and Liquidity: Investors can manage and adjust their portfolios anytime, with instant settlement available 24/7, eliminating the restrictions of traditional market hours.
- Highly Tax-Aware: Real-time tax-loss harvesting and continuous optimization for tax efficiency enables investors to keep more of their gains.
By cutting out intermediaries, Onchain SMAs empower investors with full control of their assets while providing asset allocators with the flexibility to allocate to sophisticated strategies. Moreover, onchain SMAs are not subject to the SEC’s custody rule, as clients maintain exclusive custody of their assets, only granting managers discretion programmatically. This allows for secure and compliant management while leveraging the vast universe of onchain assets and protocols.
There are Two Types of Onchain SMAs:
- Programmatic SMAs: Pre-programmed strategies, model portfolios, and indices with specific rebalancing triggers, perfect for sophisticated investments like arbitrage or looping.
- Actively Managed SMAs: Fully customizable portfolios that allow managers to execute transactions, rebalance, and trade at any time, ideal for multi-asset portfolios and direct indexing.
“Crypto rails are now mature enough to not only match the functionality of traditional financial markets but to take them to a whole new level of performance, access, and functionality not available or possible on legacy rails. Onchain SMAs are the first major step in bringing mainstream investment and asset management onchain,” said Miguel Kudry, CEO and Co-Founder of L1.
As an operating system, L1 builds on top of open-source protocols and existing infrastructure providers. For its new Onchain SMA product, L1 is proud to partner with industry leaders like Gauntlet and Safe, whose proven risk management, custody, onchain asset management solutions currently help secure and manage over $100 billion in onchain assets.
“We are excited to partner with L1 to help the next generation of asset managers and Registered Investment Advisors serve their own clients onchain,” added Tarun Chitra, CEO and Co-Founder of Gauntlet.
Registered Investment Advisors, wealth managers, family offices and MFOs, and asset managers can learn more about Onchain Separately Managed Accounts at https://l1.co/onchain-smas
About L1
L1 is the operating system for onchain wealth and asset management. It enables financial advisors, asset managers, and investors to work together in a completely non-custodial way, leveraging top decentralized finance (DeFi) protocols. For more information about L1, visit https://l1.co
For L1 media inquiries, please contact: media@l1.co
About Gauntlet
Gauntlet specializes in advancing the industry’s understanding of crypto-native economics. The company helps secure over $35 billion in onchain assets across the most utilized Decentralized Finance (DeFi) protocols by tapping into more than 380 billion data points to derive powerful predictions for risk management and pattern-matching.
For Gauntlet media inquiries, please contact info@gauntlet.xyz
Contact Info:
Name: Media
Email: Send Email
Organization: L1
Website: https://l1.co
Release ID: 89143920
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