DeFi
News
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9/6/2023

Defactor Labs Tokenizes $100M in Bonds with Tokeny and Black Manta Capital Partners

June 6th, Luxembourg – Defactor Labs, a trailblazing DeFi lending platform for small and medium-sized enterprises (SMEs), proudly announces the launch of tokenizing $100 million worth of Alpha Bonds, using the ERC3643 token standard to enforce compliance on the Polygon Network, to lend capital to SMEs using real-world assets (e.g., receivables) as collateral.

Defactor Labs Tokenizes $100M in Bonds with Tokeny and Black Manta Capital Partners
Defactor Labs Tokenizes $100M in Bonds with Tokeny and Black Manta Capital Partners
Alpha Bonds announced at Money2020 - Defactor Labs CEO and Co-founder Alejandro Gutierrez officially launches Alpha Bonds on stage Money20/20. Photo credit: Defactor Labs Team

SMEs are often subject to the same stringent lending criteria as large corporations by traditional banks. This can impede their ability to secure funding, limit their potential for growth, and hinder their competitiveness. Defactor Labs aims to address these challenges via tokenized Alpha Bonds to bridge the $1.5 trillion USD global funding gap to ultimately better cater to SMEs’ funding needs worldwide.

In traditional investment practices of bonds, the transparency surrounding traditional bond instruments has often been obscured, accompanied by lengthy settlement cycles and cumbersome manual processes. On the contrary, the Alpha Bonds create unparalleled transparency, efficiency, and instant settlement through tokenization. Moreover, the Alpha Bonds are compliantly distributed to a global network of audiences to allow eligible investors to digitally subscribe and purchase these digital bonds with an e-commerce-like experience that leverages the benefits of tokenization.

It is worth noting that the secondary trading of Alpha Bonds is enabled due to them being issued on the ERC3643 standard. With ERC3643, the compliance rules are embedded into the digital securities, where investors have the opportunity to achieve liquidity by trading their Alpha Bonds with eligible counterparties without a middleman — a possibility that has historically been unattainable. This increased liquidity further strengthens the appeal and viability of these innovative investment instruments.

Defactor Labs, in collaboration with CMS, a globally renowned law firm with 78 offices across 40 countries, have chosen Luxembourg as the jurisdiction to issue the digital bonds. While CMS provides legal guidelines and documentation, Black Manta Capital Partners provides a BaFin broker-dealer license and marketplace, powered by Tokeny‘s ERC3643-based tokenization engine for Defactor Labs. These partnerships streamlined the launch of the Alpha Bonds to allow Defactor Labs to focus on their core businesses.

Importantly, the effectiveness of the Alpha Bonds has already been proven through their pilot projects. These projects have already facilitated $30 million in transactions and successfully financed $2M in the past three months, emphasizing the practical viability and reliability of their approach, with no defaults recorded.

Launching Alpha Bonds is a monumental milestone for not only us at Defactor but for the worldwide network of SMEs. Our goal has always been to create a truly inclusive global economy with access to liquidity for all. With this partnership with Tokeny and Black Manta Capital Partners, they are the missing pieces we needed to ultimately fulfill our goal. We are excited to officially launch Alpha Bonds and allow investors to earn a return, while at the same time helping SMEs to grow around the world. Alejandro Gutierrez CEO and Co-Founder of Defactor Labs
Tokeny, as the technology partner of Defactor Labs, is excited to contribute to bridge traditional finance to DeFi through the launch of 'Alpha Bonds'. 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 thanks to ERC3643 protocol’s on-chain compliance nature. Luc Falempin CEO of Tokeny
Traditional finance is in a constant state of transformation, and we at Black Manta Capital Partners believe that an important part of the financial market will be permissioned decentralized finance. The ‘Alpha Bonds’ project, as Europe’s first institutional grade DeFi product, lays the foundation for bringing real world assets into the DeFi space, and we are delighted to be working with Defactor Labs and Tokeny to bring this innovative product to market. Alexander Rapatz Founding & Managing Partner at Black Manta Capital Partners
About Defactor Labs

Defactor Labs is busy building a global community of investors and businesses who know how to put capital to work. Using blockchain technology to secure real-world assets, we give investors the confidence to lend to SMEs. Our vision is to create a truly inclusive lending space, where anyone can participate and benefit from the opportunities of the global economy. Based out Dogpatch Labs in Dublin, we are part of a cohort of promising startups driving towards a brighter and more inclusive future for all.

About Black Manta Capital Partners

BMCP is a one-stop agency for all technical, financial, and legal aspects of asset tokenization. With security tokens that grant equity, profit, and governance rights to investors, BMCP runs a Multi-STO platform that aims to set a global standard for security token offerings (“STOs”). BMCP was founded in Luxembourg in 2018 and runs BMCP GmbH in Munich as a licensed and regulated Financial Service Institute for STOs, consulting entity BMCP Consulting GmbH in Vienna, and international business development through its Irish BMCP Limited.

About Tokeny

Tokeny provides a compliance infrastructure for digital assets. It allows financial actors operating in private markets to compliantly and seamlessly issue, transfer, and manage securities using distributed ledger technology. By applying trust, compliance, and control on a hyper-efficient infrastructure, Tokeny enables market participants to unlock significant advancements in the management and liquidity of financial instruments. The company is backed by strategic investors such as Euronext and Inveniam.

Source - Tokeny

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