Zoth Raises $2.5M to Transform Finance with RWAs

Zoth: Bridging Liquidity Across TradFi and OnchainFi

In an era where the integration of traditional finance (TradFi) and decentralized finance (DeFi) is paramount, Zoth emerges as a game-changer. The recent announcement of their $2.5 million funding round marks a significant milestone in their mission to provide sustainable yields backed by real-world assets (RWAs). This development sets the stage for a multichain stablecoin ecosystem that promises to deliver native sustainable yield to the DeFi landscape.

Funding Round Highlights

• Lead Investor: Blockchain Founders Fund
• Participating Investors:
  • Borderless Capital
  • Mindfulness Capital
  • YAP Capital
  • Momentum6
  • Singularity DAO
  • Aztlan Capital
  • Outlier Ventures
  • Decubate
  • Wormhole Ecosystem Fund
  • Notable angel investors from Huma Finance and Circle

Zoth’s funding round is not just about capital; it includes a strategic partnership with the XDC Network blockchain, enhancing the efficiency and transparency of handling RWAs. This collaboration is poised to cater to enterprises keen on tokenizing real-world assets, thus expanding the scope of blockchain applications.

Growth and Ecosystem Development

Since its inception, Zoth has demonstrated impressive growth:

• Deployment: $6.5 million in private credit
• Originated Assets: \(50 million, with a pipeline totaling \)140 million

Zoth's commitment to building a regulated infrastructure supports innovative product development across its ecosystem. The inaugural product, Zoth FI, is already live on multiple mainnets including Ethereum, Polygon, and XDC Network. Users can earn RWA-backed yields by staking stablecoins in the Zoth FI marketplace.

Future Product Offerings

Zoth is not resting on its laurels. The project plans to introduce more regulated products, such as:

• Money Market Funds: Backed by secure assets like Treasury Bills, Sovereign Bonds, and Commercial Papers from AAA-rated companies.

Strategic Partnerships and Recognition

Throughout the past year, Zoth has established collaborations with respected institutional partners such as Chainlink and Funfair Ventures, significantly impacting liquidity bridging between TradFi and DeFi. Recognized by notable entities including Fidelity FCAT and the Wormhole Foundation, Zoth has built compliant infrastructures in multiple jurisdictions, including the UAE and Luxembourg.

The Market Opportunity

According to Boston Consulting Group (BCG), the tokenization of RWAs could evolve into a \(16 trillion industry by 2030. The potential for secure and sustainable yield within DeFi presents a multi-trillion dollar opportunity, positioning Zoth on a path to achieving a \)1 billion total value locked (TVL) backed by RWAs.

Zoth exemplifies a dynamic ecosystem that bridges liquidity across TradFi and OnchainFi, facilitating an influx of assets and capital across sectors. As it continues to innovate and expand, the future looks promising for Zoth and its stakeholders.