Real-World Asset (RWA) credit protocol company Zivoe has raised $8.35 million in a funding round led by investors Andrew Keys, Iceberg Capital, and Concave, Investing.com has learned.

The funding comes as Zivoe prepares to launch a lending protocol that uses blockchain to make credit more accessible by connecting on-chain liquidity to actual borrowers. The launch is scheduled for July 31.

Zivoe said it will initially provide chain loans to a “strategic, regulated lending partner” to provide consumers with better interest rates.

In the long term, the protocol aims to engage directly with consumers, thereby bridging the gap between blockchain finance and time-honored financial systems.

“We are grateful to have achieved this important milestone and happy to be able to bring an innovative solution to the traditional lending industry,” said Kristal Gruevski, Founder and General Counsel of Zivoe.

“Our ITO will provide DeFi users with unprecedented access to the consumer lending market. This is just the beginning of a new era where blockchain technology and real-world lending converge. We are incredibly excited to help millions of underserved people around the world while also bringing new RWAs to DeFi.”

Tokenization of real-world assets is emerging as one of the most promising applications of cryptocurrencies. The process involves moving physical assets from the physical world to the blockchain. In turn, tokenization of securitized loans simplifies the process, reduces administrative costs, and opens up investment opportunities to a wider range of investors.

Meanwhile, the launch will coincide with Zivoe’s Initial Tranche Offering (ITO), a liquidity bootstrapping mechanism designed to attract initial Total Value Locked (TVL). Liquidity providers can deposit stablecoins into Zivoe’s senior or junior tranches and receive Tranche Tokens in return.

These tokens offer risk stratified exposure to Zivoe’s loan portfolio, secured by a special purpose vehicle backed by cash flow from consumer loans. Participants can also stake these tokens to earn income from actual consumer loans.

ITO participants will be able to receive the platform’s native governance and utility token, $ZVE, which will later be distributed as a reward for participating in the Zivoe governance structure.

The ITO is scheduled to start on July 31 and will last 30 days.