Small business lending protocol Defactor tokenizes $100M in bonds

On the 6th of June, Defactor Labs, a DeFi lending platform, declared that it had tokenized Alpha Bonds worth $100 million using the ERC-3643 token standard. These bonds, tokenized on the Polygon (MATIC) network, will be lent out to small and medium-sized businesses with real-world assets, such as receivables, serving as collateral.

Defactor Labs collaborated with the law firm CMS to provide legal advice and paperwork, selecting Luxembourg as the governing authority for the instrument. Additionally, Black Manta Capital Partners provided a broker-dealer permit and a marketplace operated by Tokeny’s ERC-3643 tokenization technology for Alpha Bonds.

Invented in 2021 by Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin and Adam Boudjemaa, the ERC-3643 standard is established for the registry, storage, and compliance of tokens on regulated exchanges. Tokeny reports that the ERC-3643 standard has been used to tokenize more than $28 billion of instruments in over 180 jurisdictions.

Defactor Labs developers assert that more than $30 million in Alpha Bonds has been traded during its pilot phase, with $2 million allocated for project funding. Alejandro Gutierrez, CEO and co-founder of Defactor Labs, stated:

Cointelegraph reported on Feb. 21 that the native token of Defactor Labs, FACTR, experienced a huge increase of 550% after Huawei, a Chinese telecommunications giant, featured the project on its social media platforms. In a thirty-second video, Gutierrez mentioned that the project is about connecting traditional finance with DeFi, tokenizing real-world assets, and collaborating with startups and large corporations. Defactor is currently part of the Huawei International Scale-Up Program in Ireland.

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