In another move to disrupt traditional wealth and asset management, Miami-based fintech startup L1 has unveiled high-alpha, onchain investment strategies managed by crypto-native hedge funds.
Once reserved for institutions and the ultra-high-net-worth, these strategies are now available to a broader pool of investors through L1’s platform.
The shift comes as L1 seeks to democratize access to hedge funds by tearing down the traditional barriers – like sky-high minimums – to these sophisticated wealth-building vehicles. The platform also promises seamless onboarding, speedier capital deployment and heightened transparency.
Digital Wealth News connected with L1 Co-Founder and CEO Miguel Kudry about the launch: How the company is expanding access to hedge funds for both advisors and their clients – and what the future holds for the startup.
Digital Wealth News: What was the impetus for launching onchain high-alpha strategies managed by crypto-native hedge funds, and why now?
Kudry: Institutional interest has gone mainstream. PwC’s 2024 hedge-fund survey showed one-third of managers were experimenting with tokenization. Today, nearly every manager we meet is actively thinking through their onchain strategy. Regulators are finally drawing clear lines, especially in the U.S., which gives funds the confidence to move forward. The rails are ready. We’ve been honing the best investor experience possible since 2022. Pull those threads together, and we expect trillions of dollars in capital to move onchain in the next five years.
DWN: What are the biggest challenges in tokenizing hedge funds and bringing them onchain? How is L1 tackling these challenges?
Kudry: The hardest part has been user experience. Until recently, only power users were willing to set up a wallet, manage keys and navigate onchain KYC (know-your-customer). We have spent the past three years hiding that complexity. Today, an investor can open a wallet with just an email and a passkey stored in iCloud or any password manager. Identity checks feel like a normal e-commerce checkout, and allocating to a hedge-fund strategy now takes a few clicks with no forms, wires or paper statements.
The second hurdle was regulatory uncertainty. On May 15, 2025, the SEC staff issued guidance that lets registered broker-dealers and transfer agents work directly with crypto assets, sending a clear signal that self-custody and on-chain settlement fit within existing rules. That clarity allows us to build a fully compliant flow while keeping clients in control of their assets.
With both the user interface and the regulatory path solved, tokenized hedge funds can finally become simpler—and better—than their traditional counterparts.
DWN: What’s on the horizon for L1 in terms of expanding its offerings, partnering with new hedge funds or advancing the investor and advisor experience?
Kudry: We are onboarding a slate of new managers, expanding our lineup of active strategies across risk profiles and asset classes covering private credit, private equity, real estate, equities and more. We are also in active conversations with issuers and asset managers to leverage our onboarding and onchain-permissioning framework. The result for investors is straightforward: Complete KYC once and gain instant access to a broad universe of permissioned and permissionless investment products, all without ever giving up custody.
