A funding round headed by Gnosis has raised $9.5 million, according to a statement released on Tuesday by tokenized asset issuer Backed.Along with them are Exor Seeds, Cyber Fund, Mindset Ventures, Blockchain Founders Fund, Blue Bay Capital, and Nonce Classic.The company’s news statement states that the investment is intended to accelerate the rollout of its private tokenization product and bring asset managers on board with blockchain technology.
The investment took place at a time when tokenization of real-world assets (RWA) has emerged as one of the most exciting areas of the digital asset market, with major asset management companies, cryptocurrency companies, and international banks vying to introduce conventional financial instruments like bonds, money, and loans to blockchains.
In comparison to conventional financial railroads, tokenization may provide advantages including better trade settlement efficiency, more investor access, and less administrative work.The asset manager 21.co predicted in a research last year that the RWA market may reach $10 trillion by the end of the decade.According to its website, the company, which is headquartered, regulated, and backed by Switzerland, has issued over $50 million worth of tokenized RWAs, including ERC-20 compatible token versions of individual stocks like Tesla (TSLA) and Coinbase (COIN) and exchange-traded funds (ETF).
“Global financial markets are fragmented, hindering accessibility and efficiency,” said Youbin Kang, chief executive of Nonce Classic, one of the investors in the round. “Backed aims to solve these issues by bringing RWAs on-chain.”