Zoth secures $4M to build DeFi yield infrastructure with real-world assets

Key Takeaways

• Zoth has raised $4 million to fund its Tokenized Liquid Note backed by US Treasury Bills and corporate bonds.
• The company targets institutional investors with its blockchain-based fixed-income products.

Zoth, a decentralized finance infrastructure company specializing in the tokenization of real-world assets, has successfully secured $4 million in a strategic funding round, said the company in a Monday press release. The fresh capital will be used to accelerate the launch of its product, the Tokenized Liquid Note (ZTLN).

The ZTLN is a $100 million product backed by secure, low-risk assets like US Treasury Bills and top-rated corporate bonds. Designed to bridge the gap between traditional finance (TradFi) and decentralized finance (DeFi), the product provides institutional and qualified investors with transparent, audited, and liquid fixed-income options on the blockchain.

The funding round attracted a strong lineup of investors, including Taisu Ventures, G20, Fat Cat Ventures, and others. Coinbase and Hedera, along with Ripple’s XRPL Foundation, also backed the project.

With this new funding, Zoth plans to expand its product offerings, strengthen its team, and accelerate market penetration. The company’s vision is to become a leading provider of crypto yield solutions, offering a range of products that cater to different investor risk profiles and preferences.

“We’re building a one-stop crypto yield layer solution for sustainable yield by harnessing on-chain permissioned RWAs and permissionless DeFi fixed-yield products,” said Pritam Dutta, Founder CEO of Zoth. “We believe the biggest opportunities in the crypto-asset industry lie within these sectors.”

The company, founded in January 2023 by Pritam Dutta and Koushik Bhargav, is on a mission to connect liquidity across TradFi and Onchain Fi, addressing a critical need in the financial markets, particularly in regions where access to capital is limited.

Zoth has already deployed $13 million in private credit and has over $100 million originated with $200 million in the pipeline. Its first product, Zoth-Fi, is available on eight blockchains, including Ethereum and Polygon.

Earlier this year in April, Zoth raised $2.5 million in a seed round led by Blockchain Founders Fund with participation from major firms like Borderless Capital, Mindfulness Capital, YAP Capital, Singularity DAO, and Wormhole.

The company collaborates with various entities, including TradeFinex, to leverage open-source smart contract standards for trade finance, thereby enhancing the efficiency of financial transactions in the DeFi space.