Financial institutions can now get involved in the building of infrastructure in the real world, using a new kind of bridge fund.
This is a product developed by a company called BridgeCrest.
BridgeCretor, the company behind the product, says the project is a natural extension of the way investors can invest in infrastructure projects through a network of small financial institutions that can make investments and hold the infrastructure assets.
The product will be rolled out over the next few months.
For now, the only thing investors can buy is a small stake in the company’s asset class.
Bridge Cretor has already set up a fund with a $10m (about $8m) share and $5m in net proceeds.
It expects to sell the fund to investors within six months.
The fund will invest $10,000 to $20,000 of the assets held by the asset class it represents, and the rest will be used to buy up other assets.
To get the fund started, the founders of BridgeCreset asked their investors to write a short letter describing how they’d like to invest in the asset.
The letter, called a bridge prospectus, is a standard document for most asset classes, but it has become increasingly common over the last couple of years as investors have turned to online platform crowdfunding and peer-to-peer lending platforms.
It has also become a common way for financial institutions to get involved with the real-world infrastructure that is needed for projects such as roads, schools, and airports.
One of the first examples was a group of financial institutions led by Citigroup that raised $15m in the first quarter of this year through its $1.3bn bond issue.
The bank said it was targeting infrastructure investment in India, where it will be building a $6bn infrastructure project for a major metro project in Hyderabad.
Bridge Crest said it would also use the funds to invest the proceeds from its bridge fund in the $20m fund.
The company has also set up an advisory board of over 200 financial institutions.
A few of those institutions have already taken part in BridgeCrista, including Deutsche Bank and JPMorgan Chase.
It says that if you write to a particular asset class, like a bridge, you can get more value out of that than just buying a token of a different asset class from the bridge itself.
“We believe that there’s a lot of potential for people to take advantage of these opportunities,” said BridgeCretta’s co-founder and chief executive officer Peter Joly.
“A lot of these investments are small investments, but you could have a lot more impact by taking advantage of a particular kind of asset.”
He said the company hopes to see BridgeCrentor get into more markets over time.
For the time being, it is looking for investors to help it fund its initial fund of $10 million.
The investment is expected to last a year.
The bridge fund is a part of Bridge Crest’s wider effort to build its own blockchain-based infrastructure business, and it has also developed a platform for small financial firms to invest and hold infrastructure assets on.
The platform allows for investments to be made directly into the infrastructure or into the asset in exchange for holding a certain amount of collateral.
This type of asset can then be sold at a later date.
That way, investors can keep the money invested and the infrastructure itself can be used again.
The idea is that the fund can be an investor’s bank account, for example, rather than a bank account.
“The idea is to help the fund become the conduit for a variety of investments,” said Mr Joly, referring to the idea of putting funds directly into assets.
“It’s a very interesting way to invest, and I think it’s going to be really disruptive for the industry in a lot, many ways.”
Mr Jyls view of the project was similar to that of his co-founders.
“There’s a big need in finance right now,” he said.
“So many banks have stopped lending because they don’t know what to do with their own clients.
And there’s lots of frustration among the customers, too.”
If you’ve got people that have a portfolio of assets that you want to put into a fund, I think there’s value there.