RWA platform Allo secures $100m Bitcoin-backed credit facility

Real-world asset tokenization platform Allo has secured $100 million in debt financing to support its Bitcoin-backed lending business.

On December 23, the Allo team announced that the platform had successfully secured a Bitcoin (BTC)-backed loan facility in a funding round led by a consortium of lenders. These included London-based digital finance pioneer Greengage and an unnamed US-based institution.

Allo, which has seen huge traction in the Bitcoin staking ecosystem and tokenization of real-world assets on BNB Chain, will use its credit facility to strengthen its crypto-backed lending service. The platform appeals to both corporate and individual customers who want to participate in the rapidly expanding crypto lending market.

Sean Kiernan, CEO of Greengage, commented on the raise and stated in a press release that the UK-based company supports Allo’s initiative as the BTC lending platform plans to move traditional financing on-chain.

Allo’s staking through BTC staking platform Babylon currently stands at over 544 BTC, and DeFiLlama indicates that the total value locked in alloBTC is approximately $50 million. Growth in the BNB Chain ecosystem has also seen TVL on tokenized RWA reach $2.2 billion. Meanwhile, the project is among the projects that are guaranteed to receive investment from Binance Labs through the MVB Accelerator program.

While the RWA market currently hovers around $900 trillion, tokenized assets are projected to account for 10% of global gross domestic product, worth $24 trillion by 2027. Allo plans to tap into this tokenization potential with its financing initiative.

The expansion has also seen it form strategic partnerships with various crypto ecosystem players, including custody and wallet infrastructure provider Cobo and decentralized oracle network Chainlink.