Allo Secures $100M Bitcoin-Backed Credit Facility
Dubai-based tokenization platform Allo has announced a $100 million credit line backed by Bitcoin (BTC). According to a Dec. 19 statement, the financing was provided by a consortium of lenders, including Greengage and a “long-standing” United States institution.
The Allo platform specializes in real-world asset tokenization and onchain lending, enabling users to tokenize assets and leverage blockchain technology for lending. Before securing the credit line, Allo had already raised $750,000 during its participation in the Binance Labs accelerator program and nearly $2 million in seed funding from prominent investors like NGC, Gate Labs, and Morningstar Ventures.
Allo has staked over 544 BTC through the Babylon protocol, enabling the minting of its native alloBTC token. According to data from DefiLlama, the alloBTC token currently holds a valuation of $54 million. Furthermore, the company has facilitated over $2.2 billion worth of tokenized assets on the BNB Chain.
The Rise of Tokenization
Tokenization has become a key trend in the cryptocurrency sector, allowing tangible assets like real estate, gold, and company shares to be digitized into tokens. These digital tokens represent ownership or rights to the underlying assets, enabling seamless buying, selling, and trading on blockchain networks.
By tokenizing assets, markets traditionally constrained by illiquidity or access restrictions have become more inclusive and flexible.
A $30-Trillion Opportunity
Tokenized real-world assets (RWAs) have witnessed explosive growth in 2024, driven by increased participation from traditional investors. Data from RWA.xyz shows that the total value of tokenized assets has risen to $13.9 billion, up significantly from $8.3 billion in January.
This surge has been primarily led by private credit markets, followed by U.S. Treasury bonds, commodities, and institutional funds.
In line with this trend, tokenization startups have gained momentum. For instance, the Plume Network announced a $20 million funding round on Dec. 19 to expand its RWA ecosystem. Earlier this year, Securitize raised $47 million in a funding round led by BlackRock to convert traditional assets into digital securities.
A Bright Future for Tokenization
Leading consultancy McKinsey predicts that the tokenization market could reach a valuation of $2 trillion by 2030. As blockchain adoption grows and traditional investors continue to embrace the technology, the tokenization of RWAs is poised to revolutionize asset ownership and trading, creating new opportunities across industries.
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