Asset tokenization platform TrustToken just raised $20 million in a strategic token sale with the help of major venture corporations, including Andreessen Horowitz (a16z).
The startup announced Monday that the cash raised in the funding effort, which was also backed by BlockTower Capital and Danhua Capital, will be used to continue developing its platform, which seeks to list different tokens back by physical assets, according to a press release.
TrustToken has so far released one such token already – a "stablecoin" called TrueUSD, according to the release.
In a statement, TrustToken chief executive Danny An said:
"The support of these leading investment firms represents a significant step towards our goal to build a compliant tokenization platform for currencies, commodities, and real-world assets. We will draw on the combined expertise and network of these firms as we grow our industry partnerships and extend the reach of our first product, TrueUSD."
The funds will also help TrustToken expand its legal, product and engineering departments, according to the release.
Ari Paul, managing partner at BlockTower, spoke to the potential of blockchain technology and the reasons for the investment in a statement, saying that "tokenization of real-world assets will produce value much in the same way that 'equitization' did."
"We can now buy fractional ownership in a basket of commercial office buildings or commodities via equity instruments," he continued. "Tokenization will further reduce friction in asset trading and ownership."
U.S. dollars image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Andreessen HorowitzDigital AssetsICOsStablecoinsTrustTokenTrueUSD
Billionaire Marc Lasry Sees Bitcoin's Price Reaching $40,000
Another billionaire investor has made bullish comments on bitcoin.
Marc Lasry, the co-founder, chairman and CEO of Avenue Capital Group, an investment firm with $9.6 billion in assets under managem
Pop Icon Peter Gabriel Has Invested in a Blockchain Startup
Legendary musician Peter Gabriel is backing UK-based blockchain startup Provenance, though the full amount of Gabriel's investment has yet to be disclosed.
Gabriel, formerly the lead singer of rock
US Government Backs Decentralized Energy Grid With $1 Million Grant
The U.S. Department of Energy (DoE) has announced it will award a grant of nearly $1 million to a blockchain startup in a move aimed to advance the development of a decentralized energy grid.
World's First Bank-Backed Crypto Exchange Finally Opens to the Public
The world's first bank-backed cryptocurrency exchange is now open to the public after months of delays.
Japanese financial giant SBI Holdings formally launched its in-house crypto trading platform,
Coinbase Says It Now Has Regulatory Approval to List Security Tokens
U.S. cryptocurrency exchange Coinbase has received regulatory approval to acquire several securities firms – a move that could eventually see it supporting trading in tokens deemed as securities.
IBM Teams With Columbia to Launch Blockchain Research Center
Technology giant IBM has launched a new research center through a partnership with Columbia University in a move aimed to boost blockchain application development and education initiatives.
GMO's New Internet Bank Will Settle Payments With Blockchain
Japanese digital services firm GMO Internet has just launched a new web bank that it says will soon use blockchain to facilitate payments.
The firm said in a company notice that it had teamed up wi
Russian Firm Will Reward Staff With Crypto Tokens Tied to Profits
Qiwi Blockchain Technologies (QBT), a subsidiary of the Russian e-payments firm Qiwi, plans to incentivize staff by rewarding them with a custom token.
According to a report from Russian news agenc