Centrifuge raises funds to bring real-world assets to crypto

Centrifuge raises funds to bring real-world assets to crypto

Centrifuge, which claims to be the first DeFi protocol to finance real-world assets (RWAs) on the blockchain, has closed a $4m funding round.

The strategic funding came from Coinbase Ventures and other unnamed investors.

Centrifuge stated that Covid-19 and the DeFi Summer of 2020 introduced many new investors, both individual and institutional, to crypto. However, crypto has dropped in 2022 and many of these investors are looking for products that offer real value and generate sustainable yield.

This is what Centrifuge aims to do. It brings off chain assets into DeFi, enabling a range of businesses to access financing without banks or third party intermediaries. As a result, Centrifuge acts as a bridge to connect real-world assets to DeFi liquidity with their integrations into Maker and Aave.

 Through Centrifuge, businesses tokenise non-crypto assets, such as mortgages, invoices and consumer credit to create asset-backed pools. Once on the chain, these assets are unlocked and transact directly with investors.

Centrifuge CEO and co-founder Lucas Vogelsang said, “We’re building the credit market of the future and along with that we need to build out the financial ecosystem for institutions to transact on chain.

“Partners like Coinbase and BlockTower are essential in building critical parts of this infrastructure, as Centrifuge becomes the go-to platform for real-world assets and on chain secured credit.”

Earlier in the year, Centrifuge signed a $3m strategic partnership with BlockTower Capital, a crypto and blockchain investment firm.

In other crypto news, Ottr, a new Web3 mobile app that makes holding crypto simplier and more secure, recently raised $3.1m in pre-seed funding.

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