Centrifuge: crypto project receives $4 million
The crypto protocol Centrifuges today announced a financing round from large industrial companies, i.a Coinbase and Block Tower Capital.
Specifically, this is a $4 million round that comes at a time when Centrifuge has seen tremendous momentum in recent months and an increasing focus on real assets in the financial and cryptocurrency sectors.
Other investors participating in the investment round include L1 Digital and Scytale.
Earlier this year, crypto investment firm Block Tower Capital announced a $3 million strategic partnership with Centrifugewhich funded more than $182 million in assets.
Lucas VogelsangCEO and co-founder of Centrifuge, said:
“We are building the credit market of the future, and along with that we need to build out the financial ecosystem so that institutions can trade on-chain. Partners like Coinbase and BlockTower are critical to building critical pieces of this infrastructure, as Centrifuge becomes the go-to platform for assets in the real world and on chain-secured credit.”
How does a centrifuge work?
Centrifuges essentially bring in assets DeFiwhich enables a number of companies to access financing without intermediaries, but integrates other decentralized finance platforms such as Maker and Aave.
Thomas KlocanasGeneral Partner and Head of Venture at BlockTower Capital, said:
“The intersection of DeFi and traditional credit, often called Real World Assets within the digital asset space, is one of our highest conviction theses at BlockTower across our strategies. We are extremely excited to continue to support Centrifuge, which has pioneered this use case since early days, in their journey to re-platform private credit markets at scale.”
Using Centrifuge, companies can tokenize off-chain assets such as mortgages, bills and consumer loans to create pools secured by crypto-assets. Once placed on the platform and then transferred to be on-chain, these assets are transacted by investors and anyone is able to obtain liquidity.
Anthony BassiliHead of Asset Allocators at Coinbase Institutional, said:
“Coinbase is on a mission to increase financial freedom globally through open financial systems. Functioning in a vibrant crypto-economy that serves all types of participants, investors, businesses and institutions requires access to multiple asset classes such as on-chain credit. As institutional use of crypto continues to grow, real-world assets are a critical component for broad and diverse portfolio construction within the crypto-economy.”
Everything you need to know about the new crypto protocol
Founded in 2017, Centrifuge is a DeFi protocol that allows investors and borrowers to connect with liquidity without, of course, going through any bank.
The platform is based on Ethereum, but it also has a bridge on Polygon’s blockchain.
Centrifuge also has a native token, CFG which is worth $0.26 at the time of writing this article. CFG reached a value of $2.58 in October 2021, while the lowest price recorded was in May 2022 when the token was worth $0.16.
