On June 6, decentralized finance (DeFi) lending platform Defactor Labs said it tokenized $100 million worth of Alpha Bonds using the ERC-3643 token standard. The bond, tokenized on the Polygon (MATIC) network, will be lent to small and medium-sized enterprises using real-world assets, such as receivables, as collateral.
Defactor Labs partnered with law firm CMS to provide legal guidance and documentation, choosing Luxembourg as the instrument’s jurisdiction. Meanwhile, Black Manta Capital Partners provided a broker-dealer license and marketplace powered by Tokeny’s ERC-3643 tokenization engine for Alpha Bonds.
“We’re live! @DefactorLabs CEO and co-founder of @Defactor_ Alejandro Gutierrez (@A_gutierro) officially launches the very first European institution #DeFi investment product, Alpha, live on stage at @money2020!”
“We were chosen as one of the top ten finalists from… pic.twitter.com/mPDpbEQFXr“
— DefactorLabs (@DefactorLabs) June 6, 2023
Invented in 2021 by Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin and Adam Boudjemaa, ERC-3643 sets a standard for identity registration, storage and compliance of tokens on regulated exchanges. According to Tokeny, more than $28 billion in instruments have been tokenized through the ERC-4643 standard in more than 180 jurisdictions.
Defactor Labs developers claim that more than $30 million worth of Alpha Bonds were traded during the pilot testing, of which $2 million was in project financing. Alejandro Gutierrez, CEO and co-founder of Defactor Labs, commented:
“By using the ERC3643 standard to tokenize $100 million in bonds, Defactor Labs aims to not only enable institutional investors to access DeFi in a compliant manner, but also provide them with liquidity options in an open network.”
Cointelegraph previously reported on Feb. 21 that Defactor Labs’ native token FACTR surged 550% shortly after Chinese telecommunications conglomerate Huawei showcased the project on its social channels. In the 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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