Symbiont.io Inc. a New York-based company that employs blockchain technology into capital markets solution gets a $20 million funding from a host of wall street biggies including Nasdaq Inc., Citigroup Inc., and Galaxy Digital Holdings Ltd.
Some naysayers are questioning the adaptability of blockchain technology as its most common use case, cryptocurrencies are facing a bear market. Such an investment from institutional investors supports that the technology is garnering much interest despite a growing pragmatism about its limitations and potential applications
An official statement from the company elaborated that Nasdaq Ventures is the lead investor in Symbiont’s series B funding round. Other investors include Citigroup, Mike Novogratz’s Galaxy Digital Holdings Ltd. and Raptor Group Holdings, an investment company backed by Jim Pallotta’s family office.
The Chief Executive Officer, Mark Smith stated in an interview:
“We are entering a much more realistic phase where people look at this technology and think seriously about where it makes sense to apply it and where it doesn’t. We are leaving the peak of the hype cycle and entering the trough of disillusionment, especially for people who inappropriately applied this technology hoping it would become a panacea for solving all their problems.”
Assembly, a blockchain and smart contract platform developed by Symbiont can be employed by financial institutions to share and verify data. The smart contracts, the pre-programmed agreements will determine how complex financial instruments will behave in different scenarios. Blockchain will further help speed up settlement times for the syndicated loans and improve efficiency in the mortgage bond market.
According to the statement, Symbiont will use the funding to work on data management, mortgages, private equity, and syndicated loans. Nasdaq will employ Symbiont’s Assembly platform with existing and new clients that are seeking to use smart contracts or to tokenize assets.
Supporters of blockchain technology assert that technology could be applied across multiple facets such as cryptocurrencies, including financial services, bringing greater efficiency and transparency. However, its detractors claim that the technology has failed to live up to the hype. The aforementioned support does show that despite all the negativity, major players of the industry is turning towards the technology.