Key Takeaways
- Centrifuge and BlockTower announced a strategic partnership with an initial $3 million treasury token sale
- Centrifuge helps businesses tokenize non-crypto assets to create asset-backed tools and offer investment opportunities
- BlockTower is convinced about the future of Real-World Assets in the DeFi space and brings institutional capital to build investment expertise and bring about accelerated growth
- The two companies are coming together to build the future of Real-World Assets on-chain
Centrifuge, the decentralized asset financing protocol, has announced a strategic partnership with BlockTower, a crypto and blockchain investment firm. Centrifuge is already the topmost DeFi protocol for financing real-world assets (RWAs). BlockTower, on the other hand, is one of the most recognized institutional investment firms in the blockchain universe.
The newly announced partnership is likely to accelerate growth in the RWA space. BlockTower will transmit institutional capital and assets to the Centrifuge protocol, and this is expected to be a major boost in on-chain financing of real-world assets. Already, the partnership has yielded a $3 million first-round treasury token sale, which was concluded in April.
Exposing investors to Real-World Assets (RWAs)
Though some experienced investors have been backing RWAs for a while, most people are ignorant of the opportunities they offer. The newly announced partnership will help to get traditional and crypto investors to appreciate the value and opportunities of investing in RWAs.
By stepping in to partner with Centrifuge, BlockTower has become the first major investment firm to build investment expertise in the RWA space. Obviously, the firm is confident about the future of RWAs. Also, we can infer that the BlockTower team is confident about Centrifuge’s position as a leading DeFi protocol in the RWA subsector.
Centrifuge has been in the game for a while now. The protocol has been enabling businesses to tokenize non-crypto assets like consumer credit, mortgages, and invoices. They are then used to build asset-backed pools that create investment opportunities.
The nature of the DeFi space means that Centrifuge is able to democratize access to capital. The protocol allows businesses to connect with investors directly, eliminating centralized financial intermediaries like banks.
With Centrifuge, any investor can provide liquidity and earn interests and other attendant rewards in the network’s native token “Centrifuge Token” (CFG). The protocol is working towards creating the ultimate decentralized credit ecosystem for RWA space.
Working Together For a Better Future
From all indications, BlockTower and Centrifuge have been working on this partnership for a while. The two teams are committed to the future of the RWA. Currently, they are both at the Permissionless Conference in Miami, speaking about real-world assets in DeFi and how institutional investors can come in and benefit from the opportunities.
Leaders of the two companies have spoken openly about the partnership and possibilities ahead.
According to Mathew Goetz, the co-founder and CEO of BlockTower Capital Advisors:
“Blockchain technology has long held promise to overhaul the plumbing of the world’s financial services. To this end, BlockTower is excited to support the Centrifuge team as they democratize access to and generate efficiencies in the securitization industry; we believe these strategic partnerships are essential to usher in the future of finance.”
“The value of Real-World Assets to DeFi is becoming increasingly clear as the technology matures and we see first major successes in this space. The partnership between BlockTower and Centrifuge is an exciting step to accelerate the adoption of DeFi in institutional capital.”
In his own words, Lucas Vogelsang, the co-founder and CEO of Centrifuge disclosed.
