NAOS Finance Raises Seed Funding Round with $250 Million in Assets Originated
NAOS Finance, a technology company that has originated more than $250 million in crypto assets backed by real-world debt, announced today that it has raised a seed funding round to accelerate its efforts to bridge the worlds of traditional finance and crypto. The round saw participation from Mechanism Capital, The Spartan Group, SNZ, among others.
“To take DeFi to the next level, we need to bring real world assets (RWA) on-chain,” said Andrew Kang, a partner at Mechanism Capital. “Tokenizing RWA will allow for them to be easily plugged into the already vibrant DeFi ecosystem and allow traditional businesses to take advantage of more efficient financial markets.”
NAOS enables the billions of dollars held in real-world, fiat currency-denominated debt and other financial instruments to be tokenized and transacted on a blockchain. The more than $250 million originated by NAOS to date is backed by real-world assets provided by Fortune 500 companies, publicly traded institutions and international corporations that account for millions of customers globally.
While decentralized finance, or DeFi, has surged in popularity over the past year, traditional financial activities have been much slower to move onto blockchain. Now, NAOS is making it possible to bridge DeFi and traditional finance by bringing real-world assets into the crypto ecosystem. This bridge can serve as a foundation to move a much greater portion of the world’s financial activity onto decentralized networks.
“The potential of crypto to reshape the economy is almost unlimited, but it depends on our bringing a much broader swathe of the financial universe into decentralized ecosystems,” said Kevin Tseng, NAOS Finance CEO. “NAOS can be a building block for a future in which all finance is decentralized and accessible — one in which DeFi isn’t just for a small number of technically savvy insiders.”
Since all debt instruments, such as mortgages, are distinct in some way, they are realized on NAOS as non-fungible tokens, or NFTs. Each asset represents a specific debt instrument in the real world and is unique on the blockchain.
“Having real world assets linked to the blockchain is an interesting proposition,” said Wintec Industries CEO David Jeng. “There is significant friction financing inventories in the global supply chain and solutions that improve transparency, risk management and speed are very much welcomed. Large financial institutions are focused on optimizing for the best returns for their time spent: their largest customers, resulting in smaller suppliers and manufacturers becoming underserved.”
The NAOS Finance team brings with it an exceptional mix of backgrounds in finance and technology as well as crypto assets. Team members have previously worked at Microsoft, Oracle, HTC, Merrill Lynch, Alibaba, McKinsey & Co. and Citigroup. NAOS is backed by Mechanism Capital, The Spartan Group, SNZ, Sora Ventures, Youbi Capital, Incuba Alpha and Waterdrip Capital.