One of the first businesses to bring non-crypto assets to blockchains, Centrifuge, will allow Finoa, a regulated German cryptocurrency custodian, to provide its clients with tokenized real-world assets (RWA).
The initial RWA token comes from one of Centrifuge’s Anemoy funds, which is an on-chain pool of short-term US Treasury bills that is actively managed and governed by the British Virgin Islands. The coin will be made available through the FinoaConnect wallet system to the more than 300 institutional clients of Berlin-based Finoa, the businesses announced on Wednesday.
Particularly from the traditional finance (TradFi) realm of banks and institutions, there has been a rush to tokenize and offer simplified versions of a plethora of financial assets on blockchains. According to a survey released in October by digital asset management company 21.co, the market might reach $10 trillion by the end of the decade.
According to Centrifuge co-founder Martin Quensel, the Anemoy fund share token is targeted at large decentralised finance (DeFi) investors, decentralised autonomous organisation (DAO) treasuries, stablecoin protocols, and the like—a distinction from the multitude of TradFi tokenization efforts.
“I would argue traditional finance’s message for the future that trillions of dollars will be tokenized is completely disconnected from firms that are innovating with RWAs,” Quensel stated in a recent interview. “DeFi finds it incomprehensible that TradFi views a token as a database entry. A token is autonomous code that is executable, transferable, and has its own logic, rights, and possibilities. It is not a database entry.”
Co-founder of Finoa, which holds a BaFin licence, Henrik Gebbing made the observation that his institutional crypto clients frequently hoard fiat currency and stablecoins when they could be yielding interest
“We work with crypto foundations and large crypto investors and a lot of them sit on idle stablecoins with no interest being paid,” Gebbing stated in a recent interview. “The integration of Anemoy with FinoaConnect will provide a seamless user experience for those customers to deploy stablecoins in the tokenized T-Bill fund.”.