Backed Finance

Backed Finance raised $9.5 million in a Series A round in May 2024, led by Gnosis. Participants in the round included Exor Seeds, Cyber Fund, Mindset Ventures, Stake Capital Ventures, Blockchain Founders Fund, Blue Bay Capital, and Nonce Classic.

The company previously completed a seed round in 2021 with backing from Gnosis, Semantic Ventures, and Stratos Technologies. Total funding raised is approximately $12.7 million.

Backed Finance is a tokenization platform that issues ERC-20 tokens, referred to as bTokens, which represent real-world assets held in regulated Swiss custody accounts.

The platform converts traditional securities, such as Apple stock, Treasury ETFs, or custom asset baskets, into blockchain tokens by securing the underlying assets with a Swiss custodian and minting tokens that maintain a 1:1 value correspondence with the assets.

Users access Backed through a web dashboard, where approved wallets can initiate issuance transactions. To create bTokens, Backed executes the corresponding real-world trade via a broker and mints an equivalent number of tokens to the user's wallet.

For redemptions, users send bTokens to a deposit address, select either fiat or stablecoin settlement, and receive cash or USDC within three business days.

The platform incorporates proof-of-reserve functionality using Chainlink oracles, which publish custody balances to verify that each bToken is fully backed by real assets.

Native bridge contracts allow users to transfer bTokens across multiple blockchains, including Ethereum, Base, Arbitrum, Polygon, BSC, Avalanche, and Gnosis. As standard ERC-20 tokens, bTokens integrate with DeFi protocols, enabling users to use them as collateral in lending markets, deposit them in yield vaults, or trade them on decentralized exchanges.

The platform supports two primary user groups. Institutional investors who meet Swiss qualified investor requirements can complete KYC to access full issuance and redemption features. Retail users can purchase existing bTokens on decentralized exchanges or regulated platforms like INX and may qualify for redemption-only accounts under Swiss law.

Backed operates a B2B2C model that integrates institutional services with retail distribution via exchanges and DeFi protocols. The company generates revenue through several fee streams: management fees on tokenized assets under custody, transaction fees for issuance and redemption services, and premium pricing for custom tokenization-as-a-service offerings.

The business model utilizes regulatory arbitrage by operating under Switzerland's DLT Act, which provides a defined framework for tokenized securities and facilitates cross-border distribution. This enables Backed to serve institutional clients globally while adhering to a single regulatory regime.

Backed employs an asset-light approach compared to competitors that develop proprietary custody infrastructure or broker-dealer operations. The company partners with Swiss financial institutions for custody and brokerage services, concentrating on the technology layer that connects traditional finance with DeFi.

This model supports faster geographic expansion and reduces capital requirements, though it introduces reliance on third-party service providers.

The platform benefits from network effects, as each new bToken listing increases utility for existing users. DeFi protocol integrations drive additional demand without incurring direct customer acquisition costs.

Revenue growth is tied to both the number of tokenized assets and the total value locked in the system, offering multiple avenues for expansion as the tokenized asset market develops.

Ondo Finance manages over $2 billion in tokenized Treasury assets through products like OUSG and USDY, charging 0.15% management fees and integrating with DeFi protocols. Its 2025 partnership with Ripple to mint Treasuries on XRPL reflects how competitors are leveraging multiple blockchains to meet 24/7 settlement demand.

Securitize has $3.9 billion in tokenized AUM, operating as an SEC-registered broker-dealer and alternative trading system.

It supports BlackRock's $2.9 billion BUIDL fund and VanEck's multi-chain VBILL offering. By vertically integrating issuance and secondary trading, Securitize may pressure pure-play tokenization platforms like Backed on both fees and functionality.

European platforms are expanding under regulatory frameworks that favor digital asset innovation.

Tokeny, based in Luxembourg, operates with MiCA-aligned compliance infrastructure and launched €150 million in real estate notes in 2025 while offering white-label solutions for banks.

Swarm Markets, regulated by BaFin in Germany, lists tokenized Apple and Tesla stocks alongside EUR-denominated Treasury ETF notes on its DEX. These platforms compete with Backed's multi-asset strategy and may appeal to European institutional clients by offering clearer regulatory pathways.

INX and Prometheum, both licensed as alternative trading systems in the United States, focus on tokenized equities and bonds with full SEC compliance.

Although their regulatory costs are higher, they can directly serve US retail investors without the qualified investor restrictions that limit Backed's market reach.

As US digital asset legislation develops, these platforms could gain competitive advantages in the world's largest capital market.

Backed's Series A funding focuses on expanding into private-label tokenization services for asset managers, transitioning from retail-facing bTokens to higher-margin enterprise software.

This approach enables the company to address the $126 trillion global asset management market by offering compliant ERC-20 wrapper technology for funds, treasuries, and structured products.

The shift from catering to crypto traders to supporting traditional financial institutions represents a significant increase in total addressable market (TAM).

The platform plans to incorporate corporate bonds, money market funds, and commodity ETFs as regulatory frameworks such as MiCA are implemented in Europe.

Each new asset class strengthens relationships with existing institutional clients while creating opportunities to engage insurers and pension funds seeking on-chain yield solutions.

Backed is also developing permissioned DeFi modules with allowlist logic and zero-knowledge proofs, targeting banks that require asset verification without public disclosure.

Switzerland's DLT Act provides a foundation for EU passporting under MiCA, potentially enabling access to the entire European Economic Area.

Recent US digital asset legislation introduces pathways to offer 24/7 wrapped equities to accredited investors via broker-dealer partnerships, significantly expanding the addressable market.

Additionally, partnerships with investors such as CyberFund and Blue Bay Capital could drive demand for tokenized US Treasuries in emerging markets affected by currency volatility.

Fee compression: The tokenized asset market is undergoing commoditization as major asset managers, including BlackRock and VanEck, introduce direct on-chain funds. These are often deployed through vertically integrated platforms capable of offering lower fees compared to standalone tokenization services.

For example, Ondo charges 0.15% in management fees, and Securitize maintains end-to-end control over issuance and trading. This pricing pressure poses a risk to Backed's fee-based revenue model.

Regulatory fragmentation: Although Backed operates under Swiss regulatory clarity, the inconsistent and evolving digital asset regulations across key markets contribute to ongoing compliance costs and potential restrictions on market access.

The implementation of MiCA in Europe and shifting SEC guidance in the US may necessitate significant platform adjustments or constrain Backed's ability to serve specific customer segments.

DeFi integration risks: Backed's reliance on DeFi protocol adoption to drive demand for bTokens exposes the company to risks such as smart contract vulnerabilities, changes in protocol governance, or broader DeFi market downturns.

These factors could reduce token utility and trading volumes. Given Backed's asset-light model, the company has limited control over these external dependencies, which are critical to its value proposition.