Centrifuge Closes Oversubscribed Series A Funding with $15M to Scale Adoption of Institutional DeFi

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Before the upcoming fourth Bitcoin halving and the first crypto conference in Dubai, Centrifuge (CFG) revealed the completion of their Series A funding round, amassing $15 million. The financing was spearheaded by ParaFi Capital and Greenfield, attracting notable investors globally. Some of CFG’s investors include Arrington Capital, Bloccelerate, Borderless Capital, Circle Ventures, Edessa Capital, Gnosis, IOSG Ventures, Modular Capital, ProtoCap, and numerous others.

Centrifuge has raised $15M to scale the adoption of institutional DeFi.

Following the successful closure of our Series A funding round, we’re thrilled to reveal Centrifuge’s primary areas of investment for growth in both conventional and decentralized financial markets: ↓…

— Centrifuge (@centrifuge) April 17, 2024

We will put our strategic investment towards expanding our line of trusted products and making essential hires, aiming to facilitate smooth integration of institutional decentralized financial (DeFi) systems. Additionally, Centrifuge’s platform has solidified its position as a pioneer in the tokenization of real-world assets (RWA) over the years.

“Centrifuge’s mission is to construct a superior financial system from the ground up. Decentralized Finance (DeFi) embodies principles of accessibility, transparency, and interoperability, fostering more equitable, open markets. We aim to introduce these advancements to institutions while ensuring compliance and safety. Rather than replicating traditional offline procedures on the blockchain, we’re pioneering novel opportunities that were previously unattainable,” Lucas Vogelsang, Co-founder of Centrifuge, explained.

Based on Ben Forman’s statements, ParaFi Capital’s Centrifuge platform now supports the tokenization of various types of assets such as stocks, bonds, collectibles, currencies, and commodities, making it a significant player in this field.

“Forman expressed his conviction that we’re on the brink of a significant increase in institutional acceptance, and he’s looking forward to strengthening our partnership with Centrifuge.”

What Next for Centrifuge Platform

After successfully obtaining the necessary funds during the cryptocurrency market’s upward trend, Centrifuge has revealed intentions to debut an institutional-caliber lending market for Repo Assets (RWAs). Centrifuge’s RWA lending platform will be constructed utilizing Ethereum‘s layer two expansion solution, which is supported by Coinbase Global Inc (NASDAQ: COIN), Base, and integrated with Coinbase Verification. This means that the platform will leverage Ethereum’s advanced scaling technology, backed by Coinbase and its partners, to facilitate institutional-level lending for RWAs.

As a result, the Centrifuge platform allows institutions to swiftly authenticate and enroll real-world assets. The introduction of the new Real-World Asset (RWA) lending platform ensures that the real-world asset market remains accessible to all while maintaining necessary compliance standards.

“Anthony Bassili, Head of Allocators and Tokenization at Coinbase Global, stated that Centrifuge is leading the way in utilizing real-world assets and is taking a significant stride forward by integrating with Coinbase Verifications and Base as an open-source settlement system. This move is crucial for ensuring institutional clients can work with Centrifuge in a secure environment throughout the Coinbase network.”

Market Picture

After the announcement, the CFG token on the Ethereum platform reached a peak of 85 cents but later retreated below 69 cents due to the ongoing correction in the Bitcoin-driven crypto market. It’s worth mentioning that the price of Centrifuge (CFG) has risen by approximately 9% over the past month, resulting in a fully diluted market value of around $378 million.

A less capitalized cryptocurrency with potential for growth stands primed in the upcoming months, fueled by increasing institutional investment in RWA tokenization on a global scale.

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2024-04-17 20:23