Centrifuge, the first DeFi protocol to finance real-world assets (RWAs) on the blockchain, experienced substantial success and sustainable growth in 2022 year even as the wider crypto market has experienced turbulence, reinforcing the tangible value of real-world assets.
“As investors took a more discerning eye, the crypto industry at large undoubtedly faced a reckoning in the past year,” said Lucas Vogelsang, CEO and Co-Founder, Centrifuge. “We believe this is a natural cycle, and the winners of tomorrow will be the crypto projects that show tangible utility.”
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With crypto winter here, investors are looking for products that provide real value and generate sustainable yield – while in traditional asset classes. Centrifuge was the beneficiary of this shift, as the protocol brings traditional assets on-chain into DeFi, enabling businesses to access financing without unnecessary third-party intermediaries. Centrifuge is the critical infrastructure connecting real-world assets to DeFi liquidity.
With Centrifuge, businesses can tokenize their real-world assets such as mortgages, invoices and consumer credit, to create asset-backed pools. Once on-chain, these assets are unlocked through securitization via Centrifuge, where investors can finance these assets, providing liquidity and generating web3 yield that is backed by assets from the real-world. Ultimately, Centrifuge aims to create a robust, decentralized credit ecosystem.
As a result of these trends, here are some of Centrifuge’s highlights in 2022:
- MakerDAO and BlockTower to fund $220m in real-world assets through Centrifuge, making it the largest on-chain investment in real-world assets to date, and marking the first institutional credit fund to bring their collateralized lending operations on-chain.
- Raised more than $4 million from BlockTower Capital and Coinbase Ventures
- Partnered with BlockTower for a treasury token sale worth $3 million
- Surpassed more than $200 million in assets financed (all-time)
- Announced Centrifuge Connectors, a cross-chain product that will bring a native user experience to Ethereum, Avalanche, Moonbeam and Celo.
Despite the headwinds, Centrifuge sees many opportunities in 2023 and beyond for real-world assets and crypto.
“The greatest application for real-world assets in 2023 is to provide the crypto ecosystem, specifically institutional investors, stablecoins, and DAOs, the opportunity to maintain a balanced portfolio with risk-weighted returns – all on-chain,” said Vogelsang. “This will provide crypto the much-needed opportunity to mature and re-affirm its tangible value to traditional financial markets.”
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