Key Takeaways
- AllianceBlock and ABO Digital are partnering to offer tokenized structured products for institutions and crypto projects seeking alternative financing. This partnership will enable crypto projects to access additional liquidity from institutional capital providers with full compliance.
- ABO Digital will help negotiate and structure financial instruments based on the project’s capital and liquidity requirements, while AllianceBlock will tokenize and transform these into Actively Managed Certificates (AMCs) with full compliance. Participants’ capital will be locked into smart contracts, with those funds disbursed to projects only once the minimum funding threshold has been raised.
- Institutional and retail participants will benefit from the ability to provide capital to promising crypto projects using more risk-averse and compliant funding mechanisms, providing them with a different form of ownership than directly owning the project’s tokens.
- Tokenization will help these novel instruments to reach new classes of investors across both worlds, therefore increasing market liquidity.
- The collaboration between AllianceBlock and ABO Digital represents an innovative example of how the digital asset and traditional finance industries can benefit one another.
AllianceBlock, a company that develops trustless infrastructure for seamless gateways between traditional finance (TradFi) and decentralized finance (DeFi), has partnered with ABO Digital, the private digital asset investment arm of Alpha Blue Ocean. The partnership will offer tokenized structured products for institutions and crypto projects seeking alternative financing.
Through the partnership, AllianceBlock will tokenize traditional financial instruments and wrap them into traditional Actively Managed Certificates (AMCs) for capital providers that do not want to hold digital assets, using the Nexera Protocol to ensure full compliance.
Capital providers’ funds will be locked into smart contracts, with disbursement only occurring once the minimum funding threshold has been raised. In return, capital providers will receive a traditional AMC, with AllianceBlock managing the assets.
Institutional and retail participants will benefit from the ability to provide capital to crypto projects using more risk-averse and compliant funding mechanisms, providing them with a different form of ownership than directly owning the project’s tokens. In addition, they’ll gain access to token capital-raising rounds reserved exclusively for large capital providers and the AllianceBlock community through the Fundrs platform.
The partnership will bridge the gap between the crypto community and traditional financial markets by offering large crypto funds, private equity firms, and other market participants the ability to provide capital in tokenized forms of traditional financial instruments, including shares, options, bonds, tokenized funds, and tokenized AMCs.
The collaboration between AllianceBlock and ABO Digital represents an innovative example of how the digital asset and traditional finance industries can benefit one another. ABO Digital leverages its institutional-grade expertise to provide innovative and alternative financing to cryptocurrency projects.
AllianceBlock is building seamless gateways between decentralized and traditional finance by remedying issues in both spheres and linking them more closely. By bridging traditional finance with compliant, data-driven access to new decentralized markets, DeFi projects, and ecosystem-scaling tools such as funding and interoperability, they are building a next-generation financial infrastructure that aims to provide regulated financial entities worldwide with the tools they need to access the DeFi space seamlessly.
Overall, tokenization is set to play a transformative role in asset management for years to come, increasing market liquidity and democratizing access to new markets while making them safer and fair. The partnership between AllianceBlock and ABO Digital marks a significant milestone for both companies and the industry as a whole, demonstrating their commitment to innovation, compliance, and risk management.
As the industry matures and AllianceBlock expands the concept of structured financial instruments in crypto, traditional institutions will gain access to a new class of previously inaccessible assets via tokenization.
Read Also: Flare, Lena Instruments Add A New Dimension To Crowdfunding