Cadence, an American blockchain-based alternative investment provider launches an investment platform for debt, as per a press release on July 10.
Cadence turns commercial debt into digital tokens that can be traded on its plaform. With the launch of its private credit investment platform, Cadence key focus is to bring mtore transparency and efficiency to the asset class that will aid companies in their growth.
A type of alternative investment, Private credit, or private debt, has been accepted as a separate asset class very recently. Such investments are not backed by banks and aren’t issued or traded in an open market. They are often used to fund business growth and provide working capital.
The press release cites data from the Alternative Investment Management Association noting that total global assets in private credit are expected to reach above $1 trillion. Nelson Chu, the founder and CEO of Cadence explained that the securitization market for private credit has been in “desperate need of innovation.”
With a noatble listing on the Bloomberg Terminal, the company intends to offer its digital securitization technology so as to expand private debt investments for institutional and accredited investors, contributing to the growing asset class. Securitization is the process of establishing a financial instrument that merged from various financial assets into one group.
As per the press release, a major United States crypto exchange and wallet service Coinbase backs Cadence through a funding round co-led by the exchange’s investment arm Coinbase Ventures earlier this year, having raised $2 million.
Recently, Luxembourg-based securitization firm Argento teamed up with London Block Exchange (LBX) to issue a bitcoin (BTC)-based bond.
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