- Backed’s bTokens include tokenized versions of ETFs and stocks like Coinbase and Tesla, broadening investment horizons.
- Recently, Backed raised $9.5 million to accelerate its private tokenization services and expand blockchain integration.
eNor Securities, a regulated exchange operating out of El Salvador, is set to enhance its offerings by including Backed’s bTokens, for retail investors across Latin America. This initiative follows Backed’s recent moves in the tokenization space, where they’ve introduced ERC-20 compatible tokens for ETFs and high-profile stocks like Coinbase and Tesla.
ERC-20 compatible tokens for ETFs utilize Ethereum blockchain technology to digitize shares of Exchange-Traded Funds, enabling them to be traded on blockchain platforms. Each token represents a proportional share in the ETF, mirroring the underlying assets like stocks or bonds.
Transactions with these tokens are recorded securely on the Ethereum blockchain, offering transparency, reduced costs, and increased transaction speed compared to traditional stock exchanges. Tokenization enhances accessibility to global markets, especially for investors in regions with limited access, and increases liquidity through fractional trading.
However, issuers must adhere to stringent regulatory standards, including KYC and AML compliance, ensuring legal and transparent operations.
As we have reported in Crypto News Flash, additionally, these tokens can interact with decentralized finance (DeFi) applications, expanding their utility across innovative financial ecosystems.
Backed, which operates under Swiss regulation, has been at the forefront of integrating traditional financial assets with blockchain technology, offering investors new ways to engage with the financial markets. The partnership with eNor Securities represents an expansion of these services into Latin America, an emerging market with a growing interest in such innovative financial solutions.
The collaboration will see eNor Securities hosting a variety of Backed’s bTokens on its platform. This move is not just about broadening investment opportunities; it’s about simplifying access to complex financial products. Typically, these asset types have been out of reach for the average investor due to high entry barriers or regulatory constraints.
The head of Business Development at Backed, Bernardo Quintao, highlighted the importance of this partnership, noting that it marks a significant advancement in making sophisticated investment tools available to a broader audience.
“This collaboration signifies a major step forward in making tokenized securities accessible to a wider audience,” said Bernardo Quintao, Head of Business Development at Backed, in a statement.
He expressed optimism that this initiative would bridge the gap between advanced investment opportunities and everyday investors in the region.
In Crypto News Flash we have reported in detail all the processes that El Salvador has carried out with respect to bitcoin, previously, eNor Securities has been involved in innovative projects within El Salvador, including a notable $100 million public offering of a soybean-backed digital token by e-Grains. This venture underscored the potential for agricultural commodities to be tokenized, providing a template for how other real-world assets could be handled.
In April, to further enhance its capabilities and extend its reach, Backed successfully raised $9.5 million. This funding is intended to accelerate its private tokenization services and integrate more asset managers onto blockchain platforms, indicating a robust plan to widen its influence in the tokenization sector.
🚀 @BackedFi and @eNorsecurities unveil tokenization for Latin America!
❗️In April, Backed raised $9.5M from @GnosisDAO, Exor Seeds, @cyberFund_, MindsetVentures, Stake Capital Ventures, and others…
Now, Backed’s tokens are open to a wider audience!
eNor Securities from El… pic.twitter.com/N0g6zSAkQw
— WEB3ECO (@Web3Eco) August 20, 2024
This initiative by Backed and eNor Securities not only showcases the crypto financial services in Latin America but also reflects a broader trend where traditional finance and innovative blockchain technologies converge to create more inclusive financial environments.
Through such partnerships, tokenized assets are poised to become more accessible, offering retail investors unprecedented entry into markets that were once beyond their reach.
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