- They’re tokenizing $100 million in bonds
- The new product is called Alpha Bonds
- It’s available on Black Manta Capital Partners’ Tokeny platform
Credit DeFi-platform Defactor Labs is preparing to tokenize Alpha Bonds. They will issue securities worth $100 million. It uses the ERC3643 standard on the Polygon network.
Defactor Labs offers loans to small and medium-sized businesses. Now they can get cryptocurrency capital against real assets (e.g., receivables) as collateral. The ERC3643 standard will have smart contract settings sewn into it to make such securities compliant with all legal regulations.
The company says Alpha Bonds will help the global SME (small/medium enterprise) market overcome the lack of funding. That deficit is now estimated at about $1.5 trillion.
In the traditional financial system, SMEs have difficulty financing through bonds. This is due to long calculation cycles and time-consuming manual processes. Thanks to digital counterparts, the procedure will be much easier.
Partners of Alpha Bonds were CMS and Black Manta Capital Partners. CMS law firm will be responsible for compliance. And broker-dealer Black Manta Capital Partners will license the services and trading platform Tokeny. On this service, it will be possible to tokenize capital into bonds based on ERC3643.
In this service, it will be possible to tokenize capital into bonds based on ERC3643.