Quick take:
- The company will use the funds to speed up the development of its private tokenisation platform.
- Real-world asset tokenisation platforms have gained popularity as asset managers, bond issuers and credit providers look to the blockchain to extend their offerings.
- Digital asset manager 21.Co predicts the RWA tokenisation industry could be worth up to $10 trillion within a decade.
Backed, a Switzerland-based tokenisation platform has raised $9.5 million in a funding round led by Gnosis and with participation from Exor Seeds, Cyber Fund, Mindset Ventures, Stake Capital Ventures, Blockchain Founders Fund, Blue Bay Capital, and Nonce Classic.
The company said it will use the new capital to accelerate the development of its platform, which seeks to onboard asset managers to the blockchain.
The announcement comes at a time when real-world-asset (RWA) tokenisation is gaining popularity as asset managers, bond issuers and credit providers look to the blockchain to extend their offerings.
Some of the leading financial institutions including JPMorgan, Ant Group, HSBC and Mastercard have all made their way into RWA by launching standalone products or through collaborations as they seek to capitalise on the increased efficiency in settling transactions on the blockchain.
This paradigm shift has resulted in bullish predictions for the RWA tokenisation industry with digital asset manager 21.Co, forecasting a market value of up to $10 trillion within a decade.
According to Backed, its platform has already tokenised $50 million in tokenised RWAs. The company has issued tokenised versions of exchange-traded funds (ETFs), Treasury Instruments and equities including the S&P 500, Coinbase (COIN) and Tesla (TSLA).
Commenting on the announcement, Youbin Kang, chief executive of Nonce Classic, one of the venture firms that participated in the round, highlighted the fragmented nature of the global financial markets as a major hindrance to accessibility and efficiency. According to Kang Backed addresses these issues by bringing real-world assets to the blockchain.
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