Quick take:
- The company plans to build a decentralised lending market called Centrifuge Pools.
- The platform is built on Coinbase’s Base network, leveraging the network’s KYC system to accelerate the onboarding process.
- Centrifuge allows users to hedge, speculate, borrow, or service liquidity needs with or on real-world assets.
Centrifuge has completed a $15 million Series A round co-led by ParaFi Capital and Greenfield, with participation from Circle Ventures, IOSG Ventures, Arrington Capital, the Spartan Group, and Wintermute Ventures.
Centrifuge is building a real-world asset (RWA) tokenisation platform called Centrifuge Pools on Base Coinbase’s layer-2 platform. The company wants to deliver utility on-chain equivalent to what treasuries have in the traditional financial ecosystem.
Announcing its plan at Token2049 in Dubai on Wednesday, the company said to deliver decentralised finance to institutions. “Users can’t hedge, speculate, borrow, or service liquidity needs with or on RWAs today,” Lucas Vogelsang, the co-founder of Centrifuge wrote in a proposal describing his company’s plans. “If DeFi wants to expand to institutions, the key infrastructure they already enjoy needs to be here first.”
Centrifuge’s decision to choose Base as the host blockchain will see the platform accelerate the onboarding of users, by leveraging the Ethereum-based L2’s know-your-customer system.
Vogelsang said the crypto exchange platform allows users to prove that they are Coinbase account holders, or “are not sanctioned,” Axios reported.
The platform is built and governed by the Centrifuge DAO, the organisation’s decentralised community, and powered by the CFG token. “We want to use the Cayman foundation structure because it gives token holders a lot of control,” said Vogelsang.
According to Vogelsang, his company wants to build a platform that is within the legal structure to ensure it is compliant with regulations amid the U.S. regulatory authorities’ crackdown on non-compliant crypto organisations.
Centrifuge’s fundraising comes just a day after Homium, a home equity securitisation platform built on Avalanche raised $10 million in a Series A round. The growing number of platforms looking to tokenise real-world assets comes ahead of the highly anticipated Bitcoin halving event on April 19.
According to the Centrifuge website, the platform boasts 1,438 in tokenised assets with $561 million worth of assets financed.
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