Allo Secures $100 Million Bitcoin-Backed Credit Facility
The bitcoin-linked credit line was funded by a consortium of lenders, including Greengage and a “well-established” US institution.
Dubai-based Allo secures $100 million in Bitcoin-backed funding
Bitcoin
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$97,240
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The credit line was funded by a consortium of lenders, including Greenage and a “well-established” U.S. institution, according to an announcement on Dec. 19.
The platform enables real-world asset tokenization and on-chain lending. Prior to the credit line, Allo received a $750,000 investment as part of its participation in the Binance Labs accelerator program. The company has also raised nearly $2 million in seed funding from investors including NGC, Gate Labs, and Morningstar Ventures.
The startup claims to have over 544 BTC deposited through the Babylon protocol. The deposited tokens enabled the minting of the alloBTC token, which is currently worth $54 million according to data from DefiLlama. Additionally, it is said to have facilitated over $2.2 billion worth of tokenized assets on the BNB chain.
Tokenization is one of the hottest trends in cryptocurrency. It allows real assets — such as real estate, gold, or company stocks — to be converted into digital tokens that can be bought, sold, or traded online.
These tokens represent ownership or rights to the asset, making it easier for more people to invest in things that were traditionally illiquid or difficult to access.
Related: Tokenized RWAs Are a ‘$30 Trillion Opportunity’ – Polygon Executive
As more traditional investors join the crypto space in 2024, venture capital funds have seen a surge in growth. Data from RWA.xyz reveals that the total value of tokenized assets has risen to nearly $13.9 billion, up from $8.3 billion in January.
This growth is primarily driven by private credit, which accounts for the largest share, followed by US Treasuries, commodities and institutional funds.
Total RWA value on chain. Source: RWA.xyz
Similarly, startups specializing in converting cryptocurrencies into digital currencies have gained increasing popularity. On December 19, Plume Network announced a $20 million funding round to support the development of its real-world asset ecosystem. In May, Securitize also closed a $47 million funding round led by BlackRock to convert traditional assets into digital securities.
McKinsey predicts the token market will reach nearly $2 trillion by 2030.
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