Defactor tokenizes $100M in bonds for small business lending.
On June 6th, Defactor Labs, a decentralized finance (DeFi) lending platform, announced that it had tokenized Alpha Bonds worth $100 million using the ERC-3643 token standard. These bonds were tokenized on the Polygon (MATIC) network, and will be lent to small and medium-sized enterprises that use real-world assets, such as receivables, as collateral.
Defactor Labs partnered with law firm CMS to provide legal guidelines and documentation, and chose Luxembourg as the jurisdiction governing the instrument. Black Manta Capital Partners provided a broker-dealer license and a marketplace powered by Tokeny’s ERC-3643 tokenization engine for Alpha Bonds.
DefactorLabs CEO and Co-founder of Defactor Alejandro Gutierrez officially launched the first ever European Institutional DeFi investment product, Alpha, live on stage at Money2020! We were chosen as one of the top ten finalists out of…
— Defactor Labs (@DefactorLabs) June 6, 2023
The ERC-3643 token standard was invented in 2021 by Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin, and Adam Boudjemaa to set a standard for identity registry, storage, and compliance of tokens on regulated exchanges. According to Tokeny, over $28 billion worth of instruments have been tokenized via the ERC-3643 standard in over 180 jurisdictions.
Defactor Labs developers claim that over $30 million worth of Alpha Bonds have been transacted during its pilot testing, with $2 million going into project financing. Alejandro Gutierrez, CEO and co-founder of Defactor Labs, commented:
“By leveraging the ERC3643 standard to tokenize $100 million worth of bonds, Defactor Labs aims to not only allow institutional investors to compliantly access DeFi, but also provide them with liquidity options in an open network.”
Cointelegraph previously reported on February 21st that Defactor Labs’ native token, FACTR, surged 550% shortly after Chinese telecommunications conglomerate Huawei showcased the project on its social channels. In a 30-second video, Gutierrez said the project is about bridging traditional finance with DeFi, exploring the tokenization of real-world assets, and building partnerships with startups and large corporations. Defactor is currently part of the Huawei International Scale-Up Program in Ireland.
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