Backed Finance Raises $9.5 Million to Enhance Tokenization Services

Transforming Asset Management with Tokenization

Backed Finance AG has successfully raised $9.5 million in a Series A funding round, spearheaded by Gnosis with the participation of other notable investors. This funding aims to enhance Backed's tokenization offerings, particularly for asset managers looking to leverage blockchain technology.

Real-World Asset Tokenization

The tokenization of real-world assets (RWAs) remains a prominent application of blockchain technology. Backed Finance is at the forefront of this movement, having recently launched a comprehensive suite of tokenization services. Among their offerings is a tokenized government bond on the layer-2 network, Base. This innovation includes transforming BlackRock's iShares bond ETF UCITS, which tracks U.S. Treasury bills, into a tokenized format.

Advancements in Token Technology

Backed Finance has introduced bTokens, permissionless ERC-20 tokens that are both composable and interoperable. These tokens have found utility as stablecoin collateral with Angle Protocol for the USDA stablecoin and in creating real-world yield vaults on MorphoBlue. The adaptability and functionality of bTokens underscore their growing importance in the DeFi space.

Bridging TradFi and DeFi

The raised capital will enable Backed to continue developing technology that ensures data accuracy and verifiability for tokenized assets. Backed Finance positions itself as a bridge between traditional finance (TradFi) and decentralized finance (DeFi). Operating under Switzerland's Distributed Ledger Technology Act, the protocol issues Backed tokens that reflect the value of various financial assets, including treasury ETFs, corporate bonds, and equities.

Backed Finance's latest funding round not only highlights the potential of tokenization but also sets the stage for developing new products tailored to institutional clients' needs. This strategic move reinforces the company's commitment to integrating blockchain with traditional asset management, paving the way for future innovations in financial technology.