Crypto Trading Firm XBTO Establishes Tokenization Team to Focus on Real World Assets

As a seasoned financial analyst with extensive experience in the traditional capital markets, I find the recent developments at XBTO particularly intriguing. Having spent years working with mid-sized and small companies seeking financing, I can attest to the challenges they often face when dealing with investment banks and the high costs associated with those transactions.

As a crypto investor, I’m excited to share that XBTO, the cryptocurrency trading firm, is expanding its horizons by establishing a new tokenization team. This team will be dedicated to exploring the world of real-world assets (RWAs) and taking strides forward in the development of blockchain-based corporate debt issuances that the company has been working on. The areas of focus include real estate, among others. So, stay tuned for more updates as XBTO paves the way for innovative solutions at the intersection of traditional assets and the crypto world.

A significant portion of the focus in tokenization has been on major financial institutions such as JPMorgan and BlackRock, which have primarily explored the use of blockchain technology for issuing and managing digital representations of U.S. Treasuries.

XBTO, a financial firm based in Bermuda, has been actively involved in facilitating mid-market corporate debt issuances. Two such instances include tokenized debt offerings, or “senior e-notes,” for BermudAir, a boutique airline. In the near future, AgroRef, a hemp and CBD producer, is set to issue an e-note on XBTO’s platform.

Under my leadership as head of the new tokenization team at XBTO, we collaborate with Obligate, an on-chain capital markets platform. Notably, the e-notes issued through this partnership are assessed using credit technology from Credora, a leading platform in technology-driven credit evaluations.

A moderately sized or compact business seeking funding might face obstacles in accessing financial markets and find it burdensome to secure financing through conventional means, entailing the expenses related to engaging an investment bank, according to Javier Rodriguez Alarcon, XBTO’s chief commercial officer.

As a crypto investor, I can tell you that when the cost of issuance for private companies is lowered, it results in a more attractive investment proposition for me. This is because I get to enjoy better rates as an investor. Furthermore, the speed and transparency offered by using crypto rails are significant advantages. These features allow for faster settlement and greater transparency throughout the investment process.

XBTO, based in Bermuda and subject to regulation, extends access to its tokenized financial assets to accredited investors residing outside of the United States.