KKR & Apollo Back Corastone: The Blockchain Platform Set to Transform Private Markets

Wall Street Giants Bet on Blockchain to Overhaul Private Investing

The world of private markets—historically a complex and opaque space reserved for the largest institutions—is on the brink of a major technological overhaul. In a resounding vote of confidence for blockchain technology, financial titans including KKR, Apollo Global Management, Franklin Templeton, and Morgan Stanley have thrown their weight behind Corastone, a new digital infrastructure platform designed to streamline private market operations.

This isn’t just a casual endorsement. Private equity giants KKR and Apollo have gone a step further, taking minority stakes in the company, signaling a deep-seated belief that blockchain is the key to unlocking the future of this multi-trillion dollar asset class.

What is Corastone? A Digital Highway for Private Markets

At its core, Corastone is building a much-needed digital highway for an industry still reliant on manual processes, spreadsheets, and fragmented communication. The platform acts as a single, unified hub connecting the three key players in any private investment:

• General Partners (GPs): The investment managers who run the funds.
• Wealth Managers: The advisors who connect investors to these funds.
• Fund Administrators: The firms that handle the back-office operations.

By providing a single point of integration, Corastone aims to eliminate the friction and inefficiency that have long plagued the industry. Currently, the platform offers end-to-end automation for fund transactions and provides all parties with access to real-time data. This is a game-changer in a field where information can often be weeks or even months out of date.

“This milestone validates our vision for how private markets should operate: faster, more transparent and ready to scale,” said Rashad Kurbanov, co-founder and CEO of Corastone.

The Future is Automated

Corastone’s ambitions don’t stop at initial transactions. The company plans to expand its capabilities to automate other critical, yet cumbersome, processes, including:

• Capital calls
• Valuation updates
• Redemptions
• Transfers

Why This Matters: The KKR and Apollo Seal of Approval

When firms like KKR and Apollo—which manage hundreds of billions of dollars—not only sign up as clients but also invest directly, the market takes notice. Their involvement is a powerful validation of Corastone’s technology and vision.

According to Doug Krupa, KKR’s Head of Global Wealth Solutions in the Americas, the move is all about improving the investor experience. “Innovations in product structure are making high-quality private markets investments more accessible, but complex operational processes continue to create barriers to entry,” he stated. By backing Corastone, KKR aims to help tear down these barriers and unlock “greater participation in the private market ecosystem.”

In fact, reports suggest that KKR’s conviction was instrumental in bringing other major asset managers to the table, showcasing the firm’s leadership in pushing for industry-wide innovation.

Blockchain: The Engine Under the Hood

So, why is blockchain the chosen technology for this transformation? The answer lies in its inherent characteristics, which directly address the biggest pain points in private markets:

Transparency: Blockchain provides a shared, immutable ledger, meaning all parties have access to the same single source of truth in real-time. No more conflicting spreadsheets or delayed reports.

Efficiency: By automating processes through smart contracts, the platform can drastically reduce the manual labor, time, and potential for human error involved in fund administration.

Accessibility: By simplifying the complex operational backend, platforms like Corastone lower the cost and complexity for wealth managers to offer private market products, potentially opening the door for a wider range of investors.

A Broader Trend of Digitization

Corastone’s launch is not happening in a vacuum. It represents a significant milestone in the broader trend of digitizing private assets. The financial industry is waking up to the fact that the infrastructure supporting private investments has not kept pace with innovation in the public markets. We are witnessing the emergence of a new wave of fintech companies dedicated to building the rails for a more efficient and accessible private market ecosystem.

With the backing of Wall Street’s most influential players, Corastone is not just another startup. It’s a clear signal that the digital transformation of private markets is accelerating, with blockchain technology firmly in the driver’s seat.