Zivoe, a Real-World Asset (RWA) credit protocol, has raised $8.35 million in a funding round featuring investors such as Andrew Keys, Iceberg Capital, and Concave, Investing.com has learned.
The funding is in place as Zivoe prepares to launch its credit protocol, which uses blockchain to make credit more accessible by connecting on-chain liquidity with real-world borrowers. The launch is set for July 31.
Zivoe said it will initially issue on-chain loans to “a strategic, regulated lending partner” to provide consumers with better interest rates.
In the long term, the protocol plans to engage directly with consumers, bridging the gap between on-chain finance and traditional financial systems.
“We are grateful to reach this significant milestone and blessed to introduce an innovative solution to the traditional lending industry,” said Kristal Gruevski, Founder and General Counsel of Zivoe.
“Our ITO will provide DeFi users with unprecedented access to the consumer credit market. This is just the beginning of a new era where blockchain technology and real-world lending converge. We are beyond excited to help millions of underserved individuals around the world while bringing a new RWA to DeFi.”
The tokenization of real-world assets is becoming one of the most promising uses of crypto. This process involves bringing tangible assets from the physical world onto the blockchain. For its part, tokenizing securitized loans simplifies the process, cuts administrative costs, and opens up investment opportunities to a broader range of investors.
Meanwhile, the launch will coincide with Zivoe’s Initial Tranche Offering (ITO), a liquidity bootstrapping mechanism designed to attract initial Total Value Locked (TVL). Liquidity providers can deposit stablecoins into Zivoe’s senior or junior tranches and receive Tranche Tokens in return.
These tokens offer risk-stratified exposure to Zivoe’s loan portfolio, secured by a special purpose vehicle backed by cash flows from consumer loans. Participants can also stake these tokens to earn yields from real-world consumer loans.
ITO participants will be eligible to receive the platform’s native governance and utility token, $ZVE, which will later be airdropped as a reward for their participation in Zivoe’s governance framework.
The ITO is scheduled to begin on July 31 and will run for 30 days.