DeFi protocol, Centrifuge has announced a strategic partnership with cryptocurrency and blockchain investment firm BlockTower. By joining forces with Centrifuge, BlockTower plans to lend institutional resources and expertise to the protocol’s development. Cons equently, Centrifuge will be able to speed up the process of funding real-world assets (RWAs) on the blockchain. The new partnership conducted a $3 million treasury token auction in April. As a result of this collaboration, both traditional and crypto investors can see the benefits of investing in RWAs.
Lucas Vogelsang, CEO/Co-Founder, Centrifuge stated, “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.”
What the partnership brings
The agreement shows that BlockTower is convinced that RWAs have a bright future. Also, it cements Centrifuge’s status as the top DeFi protocol in this market. Along with Centrifuge, BlockTower aims to be a thought leader in the RWA space. That means they’ll be the first institutional investors to develop a portfolio around this particular asset type. Blockchain and cryptocurrency are the focus of BlockTower. It is an institutional investment firm that employs the best practices of traditional financial institutions in its approach to digital asset trading, investing, risk management, and portfolio management.
Businesses are able to interact directly with investors thanks to the Centrifuge protocol. The protocol eliminates the need for banks and other centralized intermediaries in the process. As a result, access to money is becoming more democratized. Tokenization allows companies to use traditional assets like mortgages, invoices, and consumer credit in their operations. As a result, they are able to form asset-backed pools that offer investment opportunities. With the Centrifuge Chain, anyone may supply liquidity and, in return, investors receive interest and Centrifuge Tokens (CFG).
Attending the Permissionless conference in Miami from May 17 to 19, the two companies will discuss the role of RWAs in DeFi and how institutional investors might take advantage of them.