A spinoff of Centrifuge, an industry leader in blockchain-based real-world assets (RWAs) financing, and BlockTower, a blockchain, and cryptocurrency investment firm. Have teamed up to create the future of RWA on-chain.

Coin Journal learns about the collaboration from a press release issued by both firms. BlockTower’s institutional capital and assets will be integrated with the Centrifuge protocol.

As a result of this collaboration, allowing on-chain funding for RWAs to move faster. The partners completed a first-round treasury token sale of $3 million in April as part of the new partnership.

The partnership between Centrifuge and BlockTower will focus on developing a robust ecosystem and infrastructure. For RWA, to bring greater transparency and efficiency to the financing of real-world assets.

“This partnership is a significant step forward in our mission to build the decentralized future of finance,” says Centrifuge co-founder and CEO Stijn Pieters.

“BlockTower’s experience in traditional finance, coupled with our expertise in blockchain technology, will allow us to offer a best-in-class solution for financing real-world assets.”

“Fungible assets are the key to Centrifuge’s vision of a world where all real-world assets can be tokenized and traded on-chain. We are excited to have BlockTower as a strategic partner and advisor as we launch our protocol and ecosystem,” says Centrifuge co-founder and COO Matej Boda.

The Centrifuge protocol is an open source project that enables the decentralized financing of real-world assets. The BlockTower partnership will allow Centrifuge to continue developing the protocol and ecosystem.

The significant advantage of RWA investment

The news comes as a major boost to both crypto and traditional investors, who will benefit from the partnership. BlockTower will be the first major investment firm to develop a strategy and expertise specifically for this asset class. 

Centrifuge, which is already working with some of the world’s largest companies and organizations to tokenize their assets is uniquely positioned. To provide the technology and infrastructure needed to make this happen.

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. 

Building asset-backed pools

Centrifuge, a new London-based startup, offers businesses the ability to tokenize consumer credit, invoices, mortgages, and other non-crypto assets. By establishing asset-backed pools, it creates an investment opportunity for users.

It allows enterprises to interact directly with investors, making capital more accessible. This way, stakeholders get rid of banks and other centralized middlemen. 

Investors may earn interest and bonuses by investing.

Investors receive interest plus incentives in Centrifuge Tokens (CFG), the native assets of the Centrifuge Chain, in return for providing liquidity.

The Permissionless conference in Miami is where BlockTower and Centrifuge will talk. About the promise of RWAs in DeFi and how institutional investors can profit from it. 

Matthew Goetz, CEO, and Co-Founder of BlockTower Capital Advisors, says:

“Blockchain technology has long been seen as a potential game-changer in the world of financial services. To that end, BlockTower is proud to support the Centrifuge crew as they democratize access to and reduce costs. In the securitization business, we feel these important partnerships are critical to bringing in the future of finance.”

Speaking on the same project, Lucas Vogelsang, CEO, and Co-Founder of Centrifuge adds:

“The usefulness of Real-World Assets to DeFi is becoming progressively apparent as the technology matures, with early major successes. The collaboration between BlockTower and Centrifuge is a significant step forward in bringing DeFi into the institutional capital market.”

Centrifuge is not the only one in the space. There are a few other companies that have been working on similar solutions, such as BlockTower.

What differentiates Centrifuge from its competitors is that it has already secured partnerships with major players in the industry, such as Amazon and Microsoft.

James Atkins

I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.