Funding has raised $9.5 million in a Series A funding round to accelerate tokenization for institutional customers.

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Backed Finance AG, a leading issuer of real-world assets, has completed a $9.5 million Series A funding round. The company plans to use the funds to develop private tokenization services, with the aim of providing access to blockchain solutions for asset managers.

The round was led by Gnosis, with new and existing investors including Exor Seeds, Cyber ​​Fund, Mindset Ventures, Stake Capital Ventures, Blockchain Founders Fund, Blue Bay Capital and Nonce Classic, Backed Finance shared in the press release.

“We are excited to secure this important investment round with strong participation from new and existing investors. This funding will allow us to build new products that demonstrate the potential of tokenization and are tailored to the needs of institutional clients,” said Adam Levy, Co-Founder at Backed.

The investment furthers Backed's mission to integrate traditional finance (TradFi) with blockchain technology.

Nonce Classic CEO Yubin Kang commented on the market segmentation and the Backed solution. he said:

“International financial markets are fragmented, hampering access and efficiency. A supported objective is to address these issues by bringing RWAs up the chain. Well, with deep knowledge of technology and crypto, Backed is poised to lead token innovation in both TradFi and DeFi.

Cyber ​​• Fund investor Walt Smith also commented on the potential of tokenization to change:

“A decentralized blockchain-based token like Ethereum will mark the end of these issues and the beginning of a new era of digital global commerce.”

Originally launched with Ethereum, Backed has since expanded its ecosystem to include multiple networks such as BNB Chain, Polygon, Gnosis, Avalanche, Fantom, Arbitrum, Chainlink and Base.

Supported recently launched a suite of tokenization services for financial institutions, enabling them to securely and efficiently issue tokenized assets. Their bTokens are designed for versatility and functionality, serving as collateral for stablecoins and product portfolios, exemplifying the practical application of tokens in the current financial landscape.

Tokenization, celebrated as a fundamental application of blockchain technology, has emerged as one of the most prominent trends this year. This process increases access to investment opportunities by converting real-world assets into digital tokens.

BlackRock CEO Larry Fink suggested in a CNBC interview last year that a tokenized system could eliminate all forms of corruption. He sees the introduction of spot bitcoin and ethereum ETFs as important steps towards tokenization.

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