Real-world asset (RWA) protocol Centrifuge announced it has raised $15 million in a Series A funding round to propel the extensive adoption of institutional decentralized finance (DeFi) solutions. Venture capital firms ParaFi Capital and Greenfield led the investment, which was accompanied by Circle Ventures, IOSG Ventures, Arrington Capital, Spartan Group, and Wintermute Ventures, among other backers.
Centrifuge facilitates the tokenization of RWAs. By utilizing this platform, investors gain access to a wide array of assets, which enhances transparency and offers deeper insights into their investment portfolios. Additionally, asset managers can tokenize their funds, simplifying access to essential service providers and investors. This streamlined process reduces costs associated with fund operations and opens avenues for accessing new capital sources.
With the new funding, the company aims to focus on further developing its recently introduced on-chain fund management platform. This platform facilitates the integration of credit funds onto public blockchains, offering a smoother method of fund management. The company also plans to expand its offerings by generating additional integrations for lending, borrowing, and investing in RWAs. Additionally, Centrifuge will foster the expansion of its ecosystem and recruit new talent to expedite the platform’s adoption.
Centrifuge has raised $15M to scale the adoption of institutional DeFi.With this round of Series A funding secured, we're excited to share our key focuses for Centrifuge's development, innovation, and adoption across the worlds of traditional and decentralized finance: ↓… pic.twitter.com/xYJ57Kai1K
— Centrifuge (@centrifuge) April 17, 2024
Detailing its future initiatives, Centrifuge intends to establish an institutional-grade lending marketplace for RWAs. This marketplace will be built on Base, the Ethereum Layer 2 incubated by cryptocurrency exchange Coinbase, and will be integrated with Know Your Customer (KYC) service Coinbase Verifications. These integrations will facilitate institutions’ swift and secure onboarding to RWAs.
In a post on social media platform X, Centrifuge expressed gratitude towards its supporters who resonate with the vision of advancing the financial system on the blockchain. Looking ahead, the team is increasingly enthusiastic about its mission to cultivate a more efficient, fairer, and inclusive financial system for all.
Centrifuge Pioneers Transformations In On-Chain Finance Since 2017
Founded in 2017, Centrifuge has witnessed notable achievements throughout its history, encompassing facilitating the mint of MakerDAO’s first RWA, structuring the first on-chain securitization, initiating the RWA Market in collaboration with Aave, and transitioning the operational activities of the first credit fund to the blockchain with BlockTower.
The company secured its last funding in 2022, raising $4 million in a strategic funding round from investors such as Coinbase Ventures, BlockTower, Scytale, and L1 Digital. This funding round followed a series of previous funding rounds and strategic collaborations undertaken by the company throughout the year.
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