Asset tokenization platform TrustToken has raised $20 million in a strategic round, with support from leading investment firms Andreessen Horowitz, BlockTower Capital, Danhua Capital, GGV Capital, and others.

TrustToken’s platform leverages blockchain to create asset-backed tokens that can be bought and sold around the world. TrustToken is the creator of TrueUSD – a stability-focused cryptocurrency that is redeemable 1-to-1 for U.S. dollars. TrueUSD can be currently traded on and across the world’s top cryptocurrency exchanges such as Binance, Bittrex, and Upbit.

The company said that the funding will be dedicated towards the development of the TrustToken asset tokenization platform and expansion of its legal, partnership, product, and engineering departments.

“The support of these leading investment firms represents a significant step towards our goal to build a compliant tokenization platform for currencies, commodities, and real-world assets. We will draw on the combined expertise and network of these firms as we grow our industry partnerships and extend the reach of our first product, TrueUSD,” TrustToken CEO Danny An said.

Since launching in March 2018, TrueUSD’s market capitalization has grown to $49 million, with an average daily trading volume of $22 million.

Cryptocurrency investment firm BlockTower Capital raised $140 million this January to expand its digital currency hedge fund.

“Tokenization of real-world assets will produce value much in the same way that ‘equitization’ did. We can now buy fractional ownership in a basket of commercial office buildings or commodities via equity instruments. Tokenization will further reduce friction in asset trading and ownership,” Ari Paul, BlockTower CIO and Managing Partner, said.