Key points to remember
- Zoth has raised $4 million to fund its tokenized Liquid Note backed by US Treasuries and corporate bonds.
- The company targets institutional investors with its blockchain-based fixed income products.
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Zoth, a decentralized financial infrastructure company focused on tokenizing real-world assets, has successfully raised $4 million in a strategic funding round, the company said in a press release Monday. The new capital will be used to accelerate the launch of its product, the Tokenized Liquid Note (ZTLN).
ZTLN is a $100 million product backed by safe, low-risk assets such as US Treasuries and investment-grade corporate bonds. Designed to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi), the product offers institutional and accredited investors transparent, audited, and liquid fixed income options on the blockchain.
The funding round attracted a large group of investors, including Taisu Ventures, G20, Fat Cat Ventures, and others. Coinbase and Hedera, as well as Ripple’s XRPL Foundation, also backed the project.
With this new funding, Zoth plans to expand its product offering, strengthen its team, and accelerate its market penetration. The company’s vision is to become a leading provider of cryptocurrency yield solutions, offering a range of products tailored to different investor risk profiles and preferences.
“We are building a unique crypto yield layer solution for sustainable yield by leveraging on-chain permissioned RWA and permissionless DeFi fixed yield products,” said Pritam Dutta, Founder and CEO of Zoth. “We believe the biggest opportunities in the crypto asset space lie in these sectors.”
The company, founded in January 2023 by Pritam Dutta and Koushik Bhargav, is on a mission to connect liquidity across TradFi and Onchain Fi, addressing a critical need in financial markets, particularly in regions where access to capital is limited.
Zoth has already deployed $13 million in private credit and generated over $100 million, with $200 million under development. Its first product, Zoth-Fi, is available on eight blockchains, including Ethereum and Polygon.
Earlier this year in April, Zoth raised $2.5 million in a seed funding round led by Blockchain Founders Fund with participation from major firms like Borderless Capital, Mindfulness Capital, YAP Capital, Singularity DAO, and Wormhole.
The company is collaborating with various entities, including TradeFinex, to leverage open-source smart contract standards for trade finance, thereby improving the efficiency of financial transactions in the DeFi space.
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