AllianceBlock, a blockchain infrastructure provider that connects traditional and decentralized finance, has teamed up with the online investment company ABO Digital to provide institutional and retail investors with a lower-risk, legal method of funding cryptocurrency projects through tokenization. The partnership comes as interest in tokenized assets continues to grow; earlier this year, the major investment firm Hamilton Lane offered tokenized exposure to one of its funds.
The partnership's structured products will provide cryptocurrency companies new means of obtaining money, such as by issuing tokens to market makers or venture capitalists. Institutional investors can provide projects with additional liquidity.
The financial instruments will be negotiated and structured with assistance from ABO Digital, the ABO Group's digital asset investment division, in accordance with the capital and liquidity objectives of the project. ABO Digital offers private financing for publicly traded firms. In order to create compliant Actively Managed Certificates (AMCs), which are a form of structured product that allow investors to watch and profit from an underlying asset without having direct ownership, AllianceBlock will tokenize the assets.
“With our combined effort, we aim to bring a fresh perspective to the world of decentralized and traditional finance and attract more institutional capital providers,”
said ABO Digital CEO Amine Nedjai in the press release.