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Small Business Lending Protocol Defactor Tokenizes $100M in Bonds

On June 6, decentralized finance (DeFi) lending platform Defactor Labs said that it tokenized $100 million worth of Alpha Bonds using the ERC-3643 token standard. The bonds, 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 guidelines and documentation, choosing Luxembourg as the instrument’s governing 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 are LIVE! @DefactorLabs CEO and Co-founder of @Defactor_ Alejandro Gutierrez (@A_gutierro) officially launches 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 hundreds of participants to deliver a live announcement at #Money2020 this year. This is an incredible opportunity for us to demonstrate the tremendous potential of #realworldassets and highlight the groundbreaking innovation behind the Alpha Bond! — Defactor Labs (@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 registry, storage and compliance of tokens on regulated exchanges. According to Tokeny, over $28 billion 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 has 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 Feb. 21 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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