zkMe: Enabling Semi-Liquid Funds with Decentralized Identity

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zkMe, has been recognized in a recent report by Deloitte as a technology enabler for the rapidly expanding semi-liquid funds market. The report emphasizes how semi-liquid fund structures are emerging as a powerful bridge between private markets and retail investors. These funds combine access to alternative asset classes, such as private equity and private credit, with periodic liquidity and simplified administration in a market set to grow to over $4 trillion US. Retail has been limited to public equities & fixed-income securities, missing out on the wealth creation opportunities of private markets. As Deloitte notes, the median age of companies at IPO has risen from six years in 1980 to 14 years in 2024, leaving fewer early-stage opportunities for retail participation. Semi-liquid funds provide an answer. With low minimum investment requirements, simplified tax treatment, and redemption windows, they enable retail investors to participate in alternative assets without the capital lockups of traditional private equity funds. While investor appetite is evident, Deloitte stresses that fund managers will need to adapt their operating models to fully realize this opportunity. In particular, the need to ensure compliance & transparency to satisfy regulators while protecting investor data is highlighted. The role of decentralized identity solutions is cited as a critical lever. The report identifies zkMe's decentralized identity technology as a key enabler for Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance that protects user privacy. Unlike traditional identity verification methods that require storage of sensitive customer information, zkMe leverages zero-knowledge proofs (ZKPs) to confirm investor eligibility without exposing or retaining personal data. This means semi-liquid fund managers can meet stringent regulatory requirements while reducing their liability footprint, strengthening investor trust, & increase liquidity by offering services onchain. Trust remains a critical barrier for retail investors entering alternative assets. Deloitte cites survey data showing that nearly half of retail respondents would be more likely to invest in semi-liquid funds if backed by established brands. As emerging players seek to gain credibility, leveraging trusted technology providers becomes equally important. By integrating zkMe’s #zkKYC solution, investment managers can assure both regulators and investors that the highest standards of data protection are in place. This not only reduces reputational and operational risk but also supports broader adoption of semi-liquid funds as a mainstream investment vehicle. Ready to position your fund at the forefront of the $4 trillion semi-liquid funds opportunity, schedule a demo with our team: contact@zk.me Read the full report here: https://lnkd.in/epNqWwMj

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