Today global digital assets and cryptofinance firm XBTO Group (“XBTO”) has announced the launch of a new Tokenization team within its capital market business, aimed at bridging the gap between issuers and investors through tokenization services.
Javier Rodriguez Alarcon, Chief Commercial Officer of XBTO said: “Tokenization enables issuers to optimize financing by removing layers of intermediaries, accelerating the issuance process, allowing for the topping up of existing issues, and enabling instant settlement. This all translates to a reduction in costs for issuers. It also provides investors with access to secure, efficient, and fractional ownership of assets, thereby opening up more opportunities for portfolio diversification. Tokenization is a win for both issuers and investors.”
The new team will help customers invest in tokenized real-world assets with the same seamless experience as investing in crypto-native assets, giving investors complete control and visibility of their investment.
Issuers and investors will benefit from:
- Leveling of investment opportunities: Tokenized assets break down traditional barriers to entry, reducing costs, making investment accessible to a wider range of investors. This allows for smaller investments, opening up opportunities previously reserved for institutions.
- Diversification of on-chain and off-chain return sources: On-chain natives can now access high yields or returns from off-chain sources, diversifying their portfolios. This will create a multidimensional on-chain alternative investment market with returns from both on-chain and off-chain sources.
- Speed of and breadth of capital formation: Financial products can be issued as quickly as within a day, to a global investor base, dramatically reducing friction and giving faster access to capital for issuers.
- Ease of distribution: Sending a tokenized asset to an address is just as easy as sending bitcoin to an address. It is a global distribution market from day one, making it much faster, easier and cheaper to send assets and their associated cash-flows, be they coupon payments or dividends, to the ultimate investor.
- Ease of secondary market trading: Being in a standardized format (for example, ERC-20), will ultimately enable tokens to be utilized in existing on-chain liquidity mechanisms like decentralized exchanges. Tokenized assets will be available immediately for secondary market trading on XBTO.
The tokenized asset classes that will be available through XBTO are private credit, real estate and private companies, with many more interesting token structures in the pipeline.
The new team will be led by Mas Nakachi, managing director of corporate development and principal investments at XBTO. Mas has deep experience working in the field of digital assets and tokenization, and in advising and leading teams.
Philippe Bekhazi, CEO of XBTO said “We’re proud to launch our tokenization division to widen access to funding and investment opportunities for both companies and investors.Tokenization has transformed financial markets by offering unparalleled speed, transparency, and accessibility.
As both retail and institutional investors continue to adopt digital assets, supported by growing recognition from global regulators, offering new and improved investment opportunities will be pivotal to the growth of the space.”
XBTO Tokenization launched with two issuances of senior e-notes from BermudAir, Bermuda’s premier boutique airline. While hemp and CBD producer AgroRef is also launching an e-note on XBTO in the coming weeks. XBTO works with an ecosystem of established partners in this business line, including Obligate and Credora.
Obligate is the leading on-chain capital markets platform and the e-notes will be rated by Credora, a platform that produces technology-driven credit assessments.
Tobias Wohlfarth, Head of Origination at Obligate, said: “Our partnership with XBTO is democratizing access to funding and investment opportunities. By working together, we are extending our ability to efficiently and securely connect issuers with investors via our eNotes in a regulated environment, making financial services more accessible to all.”
Darshan Vaidya, CEO of Credora, added: “We are thrilled to collaborate with XBTO, bridging traditional capital sources with on-chain opportunities. Credora’s credit assessments provide confidence and transparency in these investments.”