According to the recent report, tokenization platform TrustToken has just raised $20 million in its ICO. Such a success is a result of great support from major venture corporations, such as Andreessen Horowitz (a16z). Moreover, TrustToken is also backed by BlockTower Capital, a leading cryptocurrency investment firm, and Danhua Capital, a California-based venture capital fund.
According to TrustToken’s recent press release, the funds raised during the ICO will be spent on the platform’s further development. The company is also going to spend the funds on expanding its legal, product and engineering departments.
As Danny An, TrustToken CEO, has commented:
“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.”
TrustToken represents itself a platform designed to create asset-backed tokens that users can easily buy and sell around the world. The company’s first such a token is a stablecoin called TrueUSD (TUSD), which can be redeemed 1-for-1 for US dollars.
Having recently announced the launch of TrustUSD stablecoin, TrustToken’s ICO differs from other token sales which sell their tokens without a product. With its platform and asset-backed tokens, TrustToken aims to bridge the gap between asset investment and investors. Similarly, it brings the assets closer to the investor hence giving them more investment opportunities.
Ari Paul, managing partner at BlockTower, has expressed his expectations about the startup’s future:
“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. Through tokenization, we can now buy fractions of commodities or property such as office spaces through equity instruments.”
Earlier in June, cryptocurrency trading and education platform Hybrid Block has announced its collaboration with TrustToken. After being listed on Binance and maintaining its value close to $1, TUSD will be used by Hybrid Block’s BaseTrade platform. Due to its stability, the token will be used as a base pair. Some of the pairs include BTC/TUSD, ETH/TUSD, LTC/TUSD, XRP/TUSD and HYB/TUSD.