Blockchain-based investment provider Cadence has revealed a new debt investment platform.
Cadence explained in a recently released press statement that with the release of its private credit investment system, it can help improve efficiency and transparency of the digital asset class. This will make it easier for companies to expand their businesses.
Commercial Debt to Crypto
The US-based investment provider will turn commercial debt to cryptocurrency that can be used to trade on its platform.
Private debt, or private credit, is one kind of alternative investment that has been accepted as a distinct asset class recently. Private credit investments are not supported by banks and they’re not traded or issues in open market. They can be used to fund business expansion and can be utilized as working capital.
In its press release, Cadence cited Alternative Investment Management Association data that indicated that global assets in private debt could reach more than one trillion dollars.
Innovation in the Securitization Market for Private Debt.
Nelson Chu, founder, and CEO of Cadence, explained that there’s a strong need for innovation in the securitization market for private debt.
Cadence is committed to improving the growing asset class by sharing automated securitization technology to develop private credit investments for accredited and institutional investors.
To clarify, securitization refers to the process of implementing a financial tool that integrated different financial assets to create one group.
Cadence is bankrolled by Coinbase, one of the major cryptocurrency exchanges and wallet service providers. The alternate investment firm was able to raise $2 million in a funding series spearheaded by Coinbase Ventures early this year.