Dubai-based tokenization platform Allo has secured a $100 million financing backed by Bitcoin (BTC).
According to a Dec. 19 announcement, the credit line was funded by a consortium of lenders, including Greengage and a “long-standing” United States institution.
The platform allows real-world asset tokenization and onchain lending. Prior to the credit line, Allo secured $750,000 in investment as part of its participation in the Binance Labs accelerator program. The company has also raised nearly $2 million in seed funding from investors such as NGC, Gate Labs, and Morningstar Ventures.
The startup claims it has over 544 BTC staked through the Babylon protocol. The staked tokens allowed the minting of the alloBTC token, currently worth $54 million as per data from DefiLlama. In addition, it is said to have facilitated over $2.2 billion in tokenized assets on BNB Chain.
Tokenization is one of the most significant trends in the crypto space. It allows real-world assets — such as real estate, gold or company shares — to be turned into digital tokens that can be bought, sold or traded online.
These tokens represent ownership or rights to the asset, making it easier for more people to invest in things that were traditionally not liquid or difficult to gain access to.
Related: Tokenized RWAs are ’a $30-trillion opportunity’ — Polygon exec
With more traditional investors joining the crypto sector in 2024, RWAs have seen a surge in growth. Data from RWA.xyz reveals that the total value of tokenized assets has climbed to nearly $13.9 billion, up from $8.3 billion in January.
This growth is primarily fueled by private credit, which accounts for the largest share, followed by US Treasury bonds, commodities and institutional funds.
Total RWA value onchain. Source: RWA.xyz
Likewise, tokenization startups have grown in popularity. On Dec. 19, the Plume Network announced a $20-million funding round to support the development of its real-world assets ecosystem. In May, Securitize also closed a $47 million round led by BlackRock to turn traditional assets into digital securities.
McKinsey has predicted the tokenization market could reach nearly $2 trillion by 2030.
Related: Société Générale, Banque de France complete blockchain repo transaction