Cryptocurrency trading firm XBTO has recently launched a dedicated tokenization team with a focus on real-world assets (RWAs). This strategic move aims to advance blockchain-based corporate debt issuances that XBTO has been actively developing. The firm’s tokenization efforts initially involve mid-tier corporate debt offerings, with plans to expand into other asset classes such as real estate in the near future.
While major financial institutions like JPMorgan and BlackRock have primarily concentrated on blockchain-based U.S. Treasuries, XBTO’s approach is more geared towards practical applications in real-world scenarios. XBTO, based in Bermuda, has successfully executed tokenized debt issuances, including “senior e-notes,” for companies like BermudAir. Additionally, hemp and CBD producer AgroRef is set to launch an e-note through XBTO soon.
The new tokenization team, led by Managing Director Mas Nakachi, collaborates with the on-chain capital markets platform Obligate. The e-notes issued are evaluated by Credora, a platform specializing in technology-driven credit assessments.
Javier Rodriguez Alarcon, the Chief Commercial Officer of XBTO, highlighted the benefits of tokenization for companies seeking financing. He mentioned that smaller or mid-sized firms often face challenges accessing traditional financing markets due to high costs associated with investment banks. By leveraging tokenization, companies can reduce these costs, offering better investment opportunities to accredited investors while also benefiting from faster settlement processes and increased transparency facilitated by blockchain technology.
XBTO, a regulated entity in Bermuda, restricts access to its tokenized assets to accredited investors outside the United States. The firm’s commitment to exploring innovative tokenization solutions for real-world assets underscores its dedication to revolutionizing traditional finance through blockchain technology.