AllianceBlock, a company dedicated to building trustless and decentralized gateways that bridge traditional finance (TradFi) with decentralized finance (DeFi), has recently joined forces with ABO Digital, Alpha Blue Ocean’s crypto investment subsidiary. Together, they will provide tokenized structured products to crypto-based projects and institutional investors searching for alternative funding solutions.
Tokenization Of Traditional Financial Instruments
AllianceBlock will use the Nexera Protocol and ABO Digital’s blockchain infrastructure to tokenize traditional financial instruments. Furthermore, investors hesitant to hold digital assets can wrap these tokens in traditional Actively Managed Certificates (AMCs).
Meanwhile, AllianceBlock’s development of structured finance assets in the crypto space paves the way for tokenizing assets that were not yet. Thus, they become accessible to traditional institutions as the market evolves.
This seamless integration between TradFi and DeFi enables a smooth gateway for both worlds. Rachid Ajaja, AllianceBlock’s CEO, emphasized that this strategic partnership is poised to transform the industry by utilizing its infrastructure to tokenize traditional and digital asset instruments.
“By doing so, we are taking a significant step forward in providing institutions with a more compliant and risk-averse approach to benefit from DeFi technology,” Ajaja added. Moreover, ABO Digital’s primary objective is to offer warrants/options, debt issues, and convertible bonds to the crypto market.
This will allow companies to access the necessary funding to expand their clients and revenue bases. Tokenization allows ABO Digital to provide institutions with other financial investment options.
Amine Nedjai, ABO Digital’s CEO, stated, “AllianceBlock and ABO Digital together embody an exceptional blend of innovation, proficiency, and ethical standards in the world of cryptocurrency.”
He further said, “by joining forces, our collective objective is to revolutionize the decentralized and traditional finance sectors with a novel outlook and entice greater participation from institutional investors.”
The New Liquidity Option Will Follow Regulations
Instead of using a Simple Agreement for Future Tokens (SAFT) to allocate tokens to venture capitalists or market makers, the offered structured products enable cryptocurrency projects to acquire supplementary liquidity from institutional investors without compromising regulatory compliance.
ABO Digital’s participation in the partnership will be tailored to the capital and liquidity requirements of the project. The company will facilitate the negotiation and structuring of financial instruments accordingly.
AllianceBlock, leveraging the infrastructure of Nexera Protocol and the identity management framework of NexeraID, will tokenize the instruments and convert them into compliant AMCs. In the end, institutional and individual investors will benefit from investing in promising cryptocurrency ventures through more risk-mitigated and regulated financing structures.
Furthermore, AllianceBlock and ABO Digital will facilitate investment by private equity firms, large crypto funds, and other market participants in tokenized shares, bonds, funds, options, and AMCs. Thus, establishing a stronger linkage between the crypto community and traditional financial markets.
Tokenization will enable these novel assets to reach a broader range of investors across both sectors, improving market liquidity.
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