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Finoa’s Integration of Centrifuge’s Anemoy Tokenized T-Bill Fund
Finoa, a crypto custodian licensed by German regulator BaFin, has recently integrated Centrifuge’s Anemoy tokenized T-Bill fund into its custodial wallet system. This move aims to expand Finoa’s services and offer clients access to tokenized, real-world assets (RWA) through Centrifuge, a pioneering company in bringing non-crypto assets to blockchains.
Partnership with Centrifuge
Finoa announced its partnership with Centrifuge to custody its customers’ real-world asset investments, starting with Anemoy Capital’s Liquid Treasury Fund. This collaborative effort marks an important step for Finoa in providing a diverse range of investment opportunities for its institutional clients.
Tokenization of Real-World Assets
The first RWA token offered by Finoa is derived from one of Centrifuge’s Anemoy funds, which are actively managed pools of short-term U.S. Treasury bills regulated in the British Virgin Islands. This token will be available to Finoa’s institutional customers, leveraging the FinoaConnect wallet system. Unlike many tokenization efforts originating from traditional finance, Centrifuge’s approach aims to cater to large DeFi investors, decentralized autonomous organization (DAO) treasuries, stablecoin protocols, and similar entities.
Unique Approach in Tokenization
Centrifuge’s offering is distinct from traditional tokenization efforts in the traditional finance (TradFi) sector, as it embraces blockchain-based tokens’ unique capabilities and logic. This approach is highlighted by the co-founder of Centrifuge, Martin Quensel, who emphasizes the dynamic and executable nature of tokens in the DeFi space, contrasting it with traditional finance’s view of tokens as mere database records.
According to Quensel, the traditional finance message that trillions of dollars will be tokenized is disconnected from firms innovating with RWAs. This perspective underscores the innovative and forward-thinking approach of Centrifuge in the tokenization space.
Opportunities for Institutional Crypto Investors
Henrik Gebbing, co-founder of Finoa, emphasized the potential for clients to earn a yield on idle assets, such as fiat cash and stablecoins, by integrating tokenized RWA like the Anemoy fund into FinoaConnect. This integration aims to provide a seamless user experience for deploying stablecoins in the tokenized T-Bill fund, offering attractive investment opportunities to institutional crypto investors.
Growth of Tokenized Assets Market
The tokenization of real-world assets represents a growing trend in the blockchain space, driven by the desire to streamline financial processes and unlock new investment opportunities. Reports indicate that the market for tokenized assets could grow to $10 trillion by the end of the decade, demonstrating the significant potential for growth in this sector.
Regulatory Approvals and Strategic Ventures
In addition to expanding its offerings, Finoa has received three license approvals from Germany’s financial regulator, BaFin, indicating regulatory approval and compliance with industry standards. The company has also closed a strategic venture round led by new investor Middlegame Ventures, along with participation from existing investors.
Furthermore, in September 2023, Centrifuge announced the launch of real-world asset liquidity pool testnets on various platforms, with discussions underway for integration with other layer-1 and layer-2 networks. The goal is to provide borrowers with liquidity access without relying extensively on intermediaries, allowing asset originators to tokenize their assets and use them as collateral in Centrifuge’s liquidity pools.
Funding and Financial Performance
Finoa recently raised $15 million in a strategic funding round co-led by Maven 11 Capital and Balderton Capital. This funding round, initiated in June last year and closed in December, comes after Finoa returned to profitability in the fourth quarter of 2023, following losses in the preceding years due to market conditions and crypto collapses.