AlloyX to launch investment vault for tokenised real-world assets

DeFi protocol AlloyX has raised $2 million and announced the launch of an investment vault for tokenised real-world assets.

https://t.co/9A6eFs4Lyd

— Alloyx (@alloyx_xyz) June 29, 2023

The pre-seed round was led by Hack VC. Participants included Circle Ventures, DCG, Stratos, Lecca Ventures, MH Ventures, Early Ventures, Archblock, dao5 and Credix Finance.

“Growth in tokenisation on blockchains enables crypto investors to diversify and reap the benefits from high-yield investments linked to traditional businesses and lending strategies, known as ‘real-world assets’ — RWA»,” the AlloyX team said.

The volume of loans in this segment of decentralised finance has already surpassed $530 million. The project believes the expansion of the sector is hampered by limited liquidity, insufficient cash flows and lack of composability.

The AlloyX protocol aggregates investments in tokenised loans — digitally issued obligations backed by real assets. According to the statement, it is collaborating with a number of lending DeFi projects such as Credix Finance, Goldfinch, Centrifuge, Flux Finance and Backed Finance.

The AlloyX vault combines the Credix liquidity pool with tokenised US Treasuries. Lenders deposit capital in the stablecoin USD Coin (USDC). The platform pools the deposited assets and makes them available to borrowers through a variety of protocols.

Investors receive vault tokens in return and earn from the investments. The provided liquidity can be used to interact with other DeFi solutions to generate additional profits. According to the developers, additional advantages include the ability to build one’s own investment strategies and a single point for completing KYC procedures.

AlloyX plans to launch the vault in the third quarter of 2023. The investment solution will be available only to clients outside the United States.

As Bernstein analysts estimate, $5 trillion of assets could be tokenised in the next five years.