RWA Tokenization Platform Allo Secures $100M in Debt Financing to Bolster Bitcoin (BTC)-Backed Lending Business

The RWA market currently hovers near $900 trillion, while tokenized assets are projected to make up 10% of global gross domestic product worth $24 trillion by 2027.

Bitcoin (BTC)-backed lending platform Allo has announced securing $100 million in debt financing to enhance its lending service.

On Dec. 23, the Allo team announced the platform had successfully secured the Bitcoin (BTC)-backed credit facility in a financing round led by a consortium of lenders. These included London-based digital finance pioneer Greengage and an unnamed U.S.-based institution.

Announcing the development, Allo stated that the credit facility would be channeled toward boosting its crypto-backed lending service. The platform caters to both institutional and individual clients looking to participate in the rapidly-expanding crypto lending market.

The credit line comes as Allo is witnessing massive traction across the Bitcoin staking ecosystem and real-world assets tokenization on BNB Chain. The platform’s BTC staking service via Babylon currently stands at over 544 BTC, as per the platform's data. DeFiLlama shows the total value locked in alloBTC at nearly $50 million.

Moreover, growth within the BNB Chain ecosystem has seen its TVL in tokenized RWA hit $2.2 billion. The project is also among those to have secured investment from Binance Labs via the MVB Accelerator program.

In a press release, Sean Kiernan, CEO of Greengage, commented on the raise, highlighting the U.K.-based company's support for Allo’s venture as the platform looks to bring traditional finance on-chain.

The RWA market currently hovers near $900 trillion, while tokenized assets are projected to make up 10% of global gross domestic product, valued at $24 trillion by 2027. Allo looks to tap into this tokenization potential with the financing initiative.

Allo has also expanded through strategic partnerships with several crypto ecosystem players, including custody and wallet infrastructure provider Cobo and decentralized oracle network Chainlink.