Backed Finance AG raises $9.5 million to broaden tokenization providers

Tokenization protocol Backed Finance AG has raised $9.5 million in a Sequence A funding spherical. The capital injection was led by Gnosis and included participation from Exor Seeds, Cyber Fund, Mindset Ventures, Stake Capital Ventures, Blockchain Founders Fund, Blue Bay Capital, and Nonce Traditional.

Backed Finance mentioned the brand new funding will increase its non-public tokenization choices, specializing in connecting asset managers with blockchain tech. The tokenization of real-world belongings (RWAs) continues to be a sizzling subject within the crypto world, seen as one of many key makes use of of blockchain know-how.

Backed just lately rolled out a full set of tokenization providers together with a tokenized authorities bond on the layer-2 community Base. The protocol has turned BlackRock’s iShares bond ETF UCITS, which follows a mixture of short-term U.S. Treasury payments, right into a tokenized model.

This additionally entails issuing bTokens—permissionless ERC-20 tokens which might be each composable and interoperable. Not too long ago, these tokens have been used as stablecoin collateral by Angle Protocol for his or her USD stablecoin, USDA, and to create real-world yield vaults on MorphoBlue.

“We’re thrilled to have secured this vital funding spherical, with robust participation from each new and current traders. This funding is a testomony to the potential of tokenization, and can permit us to construct new merchandise suited to the wants of institutional purchasers,” mentioned Adam Levi, Co-founder at Backed. 

With the brand new funding, Backed continues to develop its know-how to make sure that all knowledge involving tokenized belongings is correct and verifiable.

Primarily based mentioned it supplies a bridge between conventional finance (TradFi) and decentralized finance (DeFi) by way of its tokenization providers. The blockchain protocol runs underneath the Swiss Distributed Ledger Expertise (DLT) Act, enabling it to subject Backed tokens (bTokens) that mirror the worth of varied belongings, together with treasury ETFs, company bond ETFs, and equities.