- AllianceBlock builds seamless gateways between TradFi and DeFi through its decentralized and trustless infrastructure.
- ABO Digital is the private digital asset investment arm of Alpha Blue Ocean.
- The two companies have partnered to offer alternative financing for crypto projects.
AllianceBlock has partnered with ABO Digital to offer tokenized structured products for institutions and crypto projects looking for alternative forms of financing. The partnership is another milestone for AllianceBlock in its quest to build seamless gateways between Traditional Finance (TradFi) and Decentralized Finance (DeFi).
AllianceBlock will leverage ABO Digital’s decentralized and trustless blockchain infrastructure together with the Nexera Protocol to tokenize financial instruments.
Commenting about partnership, Rachid Ajaja, the CEO of AllianceBlock said:
“Through this strategic partnership, AllianceBlock is set to revolutionize the industry by leveraging its infrastructure to tokenise traditional financial instruments and new instruments for the digital asset space, taking a giant leap forward in providing institutions with a more compliant and risk-averse way to take advantage of DeFi’s benefits. This partnership marks a significant milestone for both companies and the industry as a whole, demonstrating our commitment to innovation, compliance, and risk management. The future of finance is looking brighter than ever.”
AllianceBlock and ABO Digital’s structured products
ABO Digital offers a variety of structured financial products including convertible bonds, debt issuance, and warrants/options, providing the capital startups need to grow their customer and revenue base. It is also exploring the provision of alternative financial investments to institutions through tokenization.
The AllianceBlock and ABO Digital’s structured products will provide crypto projects with alternative funding options like issuing tokens to market makers or venture capitalists via a Simple Agreement for Future Tokens (SAFT), to access additional liquidity from institutional capital providers with full compliance.
How the structured financial products work
Under the agreement, ABO Digital will negotiate and structure financial instruments depending on a project’s capital and liquidity requirements. AllianceBlock in collaboration with Nexera Protocol’s infrastructure and NexeraID’s identity will tokenize structured financial instruments and convert them into Actively Managed Certificates (AMCs) with full compliance for capital providers that do not want to hold digital assets.
Funds from capital providers will be locked into smart contracts and disbursed to projects only after the minimum funding threshold has been raised. The capital providers will receive a traditional AMC, with AllianceBlock managing the assets by holding the convertible bonds, debt or warrants.
ABO Digital will receive a structuring fee based on the amount raised, with AllianceBlock taking the majority of fees for managing the AMC or directly through the tokenized asset.