Zivoe, a real-world asset (RWA) lending protocol, has raised $8.35 million in a funding round that included investors including Andrew Keys, Iceberg Capital and Concave, Investing.com has learned.
Funding is now available as Zivoe prepares to launch its lending protocol, which uses blockchain to make credit more accessible by connecting on-chain liquidity with real-world borrowers. The launch is scheduled for July 31.
Zivoe said it will initially issue on-chain loans to “a strategic, regulated lending partner” to provide consumers with better interest rates.
In the long term, the protocol plans to interact directly with consumers, bridging the gap between on-chain finance and traditional financial systems.
“We are grateful to have reached this important milestone and feel blessed to introduce an innovative solution to the traditional lending industry,” said Kristal Gruevski, Founder and General Counsel of Zivoe.
“Our Initial Credit Offering (ITO) will give DeFi users unprecedented access to the consumer credit market. This is just the beginning of a new era where blockchain technology and real-world lending converge. We are beyond excited to help millions of underserved people around the world while bringing a new RWA to DeFi.”
Tokenization of real-world assets is emerging as one of the most promising uses of cryptocurrencies. This process involves moving tangible assets from the physical world to the blockchain. Tokenization of securitized loans, meanwhile, simplifies the process, reduces administrative costs, and opens up investment opportunities to a broader range of investors.
Meanwhile, the launch will coincide with Zivoe’s Initial Tranche Offering (ITO), a liquidity bootstrapping mechanism designed to attract initial Total Value Locked (TVL). Liquidity providers can deposit stablecoins into Zivoe’s senior or junior tranches and receive tranche tokens in return.
These tokens offer layered risk exposure to Zivoe’s loan portfolio, secured by a special purpose vehicle backed by cash flows from consumer loans. Participants can also stake these tokens to earn real-world consumer loan returns.
ITO participants will be eligible to receive the platform’s native governance and utility token, $ZVE, which will then be released as a reward for their participation in the Zivoe governance framework.
The ITO is scheduled to begin on July 31 and will last for 30 days.
