Cadence Unveils Blockchain-Powered Tokenized Debt Marketplace
Blockchain firm Cadence, the US based provider of alternative investment, has unveiled a platform for debt. By introducing its platform for private credit, Cadence intends to improve efficiency and create more transparency to the asset thereby assisting companies to boost their businesses. Cadence converts commercial debt into virtual assets that can be bought and sold on its platform.
Only recently private credit/debt, an alternative investment, has been widely accepted. Private debt investments will not have any backing from banks. Furthermore, there is no organized market to issue, buy or sell these assets.
However, they play an incredible part in funding business and offer working capital. According to Alternative Investment Management Association, the value of global assets in private credit is expected to cross $1 trillion.
Cadence’s founder and CEO, Nelson Chu opined that the market for private credit requires huge innovations. With listing on Bloomberg Terminal, Cadence aims to play its part in the growth of the asset class by sharing its digital securitization technology to extend private debt investments for institutional and chosen investors.
Securitization involves the creation of a financial asset through the merger of several assets. Coinbase, US based popular cryptocurrency exchange and wallet service provider, backed Cadence in a $2 million funding round through its investment arm Coinbase Ventures.
Of late, Luxembourg-based securitization company Argento joined hands with London Block Exchange (LBX) to issue a bitcoin (BTC)-based bond.