AllianceBlock partners with ABO Digital to offer alternative financing for crypto projects
AllianceBlock, which develops decentralized and trustless gateways between traditional finance (TradFi) and decentralized finance (DeFi), has now announced a partnership with Alpha Blue Ocean’s private digital asset investment arm, ABO Digital, to offer tokenized structured products to institutional and crypto investors. projects and organizations looking for alternative funding.
The groundbreaking partnership with ABO Digital will see the company use its decentralized and trustless blockchain infrastructure, as well as the Nexera protocol, to tokenize conventional financial instruments, with the added benefit that these tokens can be wrapped into conventional Actively Managed Certificates (AMCs) for investors who prefer not to hold digital assets, according to information shared with Finbold on March 16.
By developing the idea of structured financial instruments in crypto, AllianceBlock will allow previously inaccessible assets to be tokenized and made available to conventional institutions as the market evolves, creating a smooth gateway between TradFi and DeFi. CEO of AllianceBlock, Rachid Ajaja, noted:
“Through this strategic partnership, AllianceBlock is set to revolutionize the industry by leveraging its infrastructure to tokenize traditional financial instruments and emerging instruments for the digital asset space, taking a giant leap forward in providing institutions with a more compliant and risk-averse way to leverage of DeFi’s benefits.”
ABO Digital offers alternative financial investments
ABO Digital was established to offer convertible bonds, debt issues and warrants/options to the digital asset market, giving companies access to the funding they need to expand their customer and revenue base. Tokenization gives ABO Digital an opportunity to offer alternative financial investments to institutions.
Amine Nedjai, CEO of ABO Digital, stated:
“Together, ABO Digital and AllianceBlock represent the perfect combination of innovation, expertise and professionalism in the cryptocurrency market. With our combined efforts, we aim to bring a new perspective to the world of decentralized and traditional finance and attract more institutional capital providers.”
As an alternative to issuing tokens to market makers or venture capitalists via a simple agreement for future tokens (SAFT), the structured products offered will allow crypto projects to access additional liquidity from institutional capital providers while maintaining full compliance.
The capital and liquidity needs of the project will inform ABO Digital’s role in the collaboration, where the company will assist with negotiating and structuring financial instruments. Using the infrastructure provided by Nexera Protocol and the identity management framework provided by NexeraID, AllianceBlock will tokenize and transform them into compliant AMCs.
Ultimately, institutional and individual investors will benefit from the opportunity to invest in potential crypto initiatives using more risk-averse and regulated funding schemes.
For example, ABO Digital and AllianceBlock will enable large crypto funds, private equity firms and other market players to invest in tokenized stocks, options, bonds, funds and AMCs, further connecting the crypto community to mainstream financial markets. Tokenization will allow these new assets to reach new investors in both sectors, increasing market liquidity.
