By
Josh O'Sullivan
April 30th, 2024
Centrifuge platform announced its Series A funding round was led by ParaFi Capital and Greenfield with participation from a dozen other venture capitals.
Ahead of the fourth Bitcoin halving and the premier crypto event in Dubai, the Centrifuge (CFG) platform announced the closure of Series A funding round with $15 million at hand. According to the company, the funding round led by ParaFi Capital and Greenfield attracted key participants from all over the world. Some of the Centrifuge platform investors include Arrington Capital, Bloccelerate, Borderless Capital, Circle Ventures, Edessa Capital, Gnosis, IOSG Ventures, Modular Capital, and ProtoCap, among many others.
Centrifuge has raised $15M to scale the adoption of institutional DeFi.
With this round of Series A funding secured, we're excited to share our key focuses for Centrifuge's development, innovation, and adoption across the worlds of traditional and decentralized finance: ↓… pic.twitter.com/xYJ57Kai1K
— Centrifuge (@centrifuge) April 17, 2024
The strategic investment will be used to further build reputable products and crucial hirings to enable seamless adoption of institutional decentralized financial (DeFi) ecosystems. Furthermore, the Centrifuge platform has established its operations over the years as a leader in real-world assets (RWA) tokenization.
“We’re focused on building a fundamentally better financial system. DeFi has always been about accessibility, transparency, and interoperability, making markets more open, fair, and decentralized. We’re bringing these innovations to institutions in a compliant and safe way. We are not recreating existing off-chain processes on-chain, we are creating new, interesting opportunities never before possible,” Lucas Vogelsang, Centrifuge Co-founder, noted.
According to Ben Forman, the founder and Managing Partner at ParaFi Capital, the Centrifuge platform has grown to a major tokenization platform for all global assets including stocks, bonds, collectibles, currencies, and commodities, among others.
“We believe we’re reaching an inflection point in institutional adoption and are excited to double down with the Centrifuge team,” Forman added.
What Next for Centrifuge Platform
Having secured the funds amid the ongoing cryptocurrency bull market, the Centrifuge platform has announced plans are in place to launch an institutional-grade lending market for RWAs. Centrifuge’s RWA lending platform will be built on Ethereum’s layer two scaling solution backed by Coinbase Global Inc (NASDAQ: COIN), Base, and integrated with Coinbase Verification.
Consequently, the Centrifuge platform will enable institutions to quickly verify and onboard real-world assets. With the new RWA lending platform, the real-world asset market will be democratized without sacrificing compliance requirements.
“Centrifuge is a pioneer in real-world assets, and is now scaling using Coinbase Verifications and Base as the open-source settlement layer. This is an important step in ensuring Institutional clients can build with Centrifuge in a safe and secure manner across the Coinbase ecosystem,” Anthony Bassili, Head of Allocators and Tokenization at Coinbase Global, noted.
Market Picture
Following the announcement, the Ethereum-based CFG token bumped to as high as 85 cents before retracing below 69 cents fueled by the ongoing Bitcoin-led crypto correction. Notably, the Centrifuge (CFG) price has gained about 9 percent in the past four weeks to a fully diluted valuation of about $378 million.
The small-cap altcoin is well-positioned to grow further in the coming quarters amid the mainstream adoption of RWA tokenization by institutional investors all over the world.