Centrifuge, an industry leader in DeFi for financing real-world assets (RWAs) on the blockchain, and blockchain and crypto investment firm BlockTower announced a partnership to build the future of RWA on-chain, Coin Journal learned from a press release.
This partnership will bring BlockTower’s institutional assets and capital to the Centrifuge protocol, speeding up the financing of RWAs on-chain. The partners completed a first-round treasury token sale of $3 million in April under the new alliance.
The high value of investing in RWAs
The announcement reflects the significant value of investing in RWAs for both crypto and traditional investors. BlockTower will become the first major investment company to build a strategy and expertise specifically around this asset class.
The partnership emphasizes Centrifuge’s reputation as the leading DeFi protocol in the RWA space, but also shows BlockTower’s certainty of the bright future of the asset class.
Creating asset-backed pools
Centrifuge enables businesses to tokenize consumer credit, invoices, mortgages, and other non-crypto assets and to create an investment opportunity by building asset-backed pools.
It lets companies transact with investors directly, thereby democratizing access to capital. This way, stakeholders cut out banks and other centralized intermediaries.
Investors earn interest and rewards
In return for providing liquidity, investors earn interest plus rewards in Centrifuge Tokens (CFG), the native assets of the Centrifuge Chain.
BlockTower and Centrifuge are at the Permissionless conference in Miami, which will run until May 19, and will speak about the potential of RWAs in DeFi and how institutional investors can make money off it.
Matthew Goetz, CEO and Co-Founder of BlockTower Capital Advisors, said:
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.
Lucas Vogelsang, CEO and Co-Founder of Centrifuge, added:
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.