Defac­tor Labs pro­vides investors with secure, com­pli­ant access to DeFi invest­ments, bridg­ing the gap between tra­di­tion­al finance and DeFi with unri­valled oper­a­tional effi­cien­cy and insti­tu­tion­al-grade security.

Alpha is one of the first legal­ly com­pli­ant bond issuance offer­ing the best of both worlds: the trust of tra­di­tion­al finance and the liq­uid­i­ty of decen­tral­ized finance. 

The tok­eniza­tion of real-world assets is rev­o­lu­tion­iz­ing the way we invest. A rapid­ly grow­ing area of finance, it’s gain­ing trac­tion in both the tra­di­tion­al and DeFi worlds. With increased trans­paren­cy, and high poten­tial returns, invest­ing in an insti­tu­tion­al-grade DeFi prod­uct, like Alpha, that tok­enizes real-world assets pro­vides an attrac­tive entry point to the world of DeFi for investors.

Through Alpha, the first of its kind secu­ri­ti­za­tion vehi­cle in Europe, investors can access decen­tral­ized finance with con­fi­dence, know­ing that they’re oper­at­ing with­in rec­og­nized legal structures. 

SMEs glob­al­ly face an annu­al $1.5 tril­lion trade financ­ing gap, exac­er­bat­ed by the pan­demic’s eco­nom­ic dis­rup­tions. One of the biggest block­ers faced by these busi­ness­es is access to cap­i­tal, hin­dered by the very insti­tu­tions that are meant to be help­ing them. 

Small and medi­um-sized enter­pris­es 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. That’s where Defac­tor Labs come in. The busi­ness lend­ing indus­try is ripe for DeFi dis­rup­tion and Defac­tor Labs believes they can address these chal­lenges and bet­ter serve the needs of SMEs the world over.

Defac­tor Labs work with busi­ness­es look­ing to grow and fund their oper­a­tions, who can secure their loan requests with real-world assets. Through their plat­form, real world assets are tok­enized by divid­ing them into small­er units, with each token rep­re­sent­ing a frac­tion­al own­er­ship of the under­ly­ing asset. When you invest in Alpha, your funds are added to the liq­uid­i­ty pools man­aged by Defac­tor Labs. These pools allo­cate fund­ing to the asset own­ers, enabling them to access cap­i­tal more efficiently.

The tok­eniza­tion process and col­lat­er­al­iza­tion of the loan are record­ed on our blockchain net­work, pro­vid­ing enhanced secu­ri­ty and trans­paren­cy for all par­ties involved. Our pilots with tra­di­tion­al asset orig­i­na­tors have suc­cess­ful­ly financed $2M over the past 3 months with no defaults. 

Defac­tor Labs is a leader in bring­ing real world assets to the blockchain. Ded­i­cated to advanc­ing the DeFi land­scape, Defac­tor Labs has already facil­i­tat­ed $30 mil­lion in trans­ac­tions and success­ful­ly financed $2M in pilots over the past 3 months, with­out any defaults. Their busi­ness mod­el encom­pass­es secured liq­uid­i­ty pro­vi­sion and pio­neer­ing finan­cial struc­tures, such as Alpha Series, as part of their inno­v­a­tive approach.

Defac­tor Labs pro­vides investors with secure, com­pli­ant access to DeFi invest­ments through the Alpha Series, the first secu­ri­ti­za­tion vehi­cle of its kind in Europe. It bridges the gap between tra­di­tion­al  finance and DeFi with unri­valled oper­a­tional effi­cien­cy, trans­par­ent on-chain col­lat­er­al­i­sa­tion and insti­tu­tion­al-grade security.

Defac­tor Labs tok­enizes real world assets by divid­ing them into divis­i­ble small­er units, with each unit rep­re­sent­ing frac­tion­al own­er­ship of the under­ly­ing asset. Invest­ing in the Alpha Bond adds funds to Defac­tor Labs’ liq­uid­i­ty pools, which are used to allo­cate fund­ing to asset own­ers so that they can access cap­i­tal more efficiently. 

The tok­eniza­tion process and col­lat­er­al­iza­tion of the loan are record­ed on the immutable blockchain, pro­vid­ing enhanced  secu­ri­ty and trans­paren­cy for all par­ties involved. 

Read more under: https://defactorlabs.com/

Ale­jan­dro Gutier­rez, Mau­rice Tracey, Tere­sa Song (from left to right)

The Alpha Bond Token, issued by Defac­tor Finance Lux­em­bourg S.à r.l. on behalf of its com­part­ment Alpha, is based on the Poly­gon pro­to­col. Poly­gon is a pro­to­col and frame­work for build­ing and con­nect­ing Ethereum-com­pat­i­ble blockchain net­works. It aggre­gates scal­able solu­tions on Ethereum and sup­ports a mul­ti-chain Ethereum ecosystem.

The bonds will be in reg­is­tered form, rep­re­sent­ed in elec­tron­ic form and issued, reg­is­tered and main­tained by the Invest­ment Plat­form acces­si­ble through the inter­net. The bonds are divid­ed into up to 100,000,000 units with a nom­i­nal val­ue of USD 1.00 each. They are rep­re­sent­ed by tokens issued by the issuer in a smart con­tract on the Ethereum blockchain, with each token bear­ing a tar­get­ed 10% semi-annu­al coupon. The tokens are cre­at­ed based on blockchain tech­nol­o­gy as val­ue units on the decen­tral­ized Ethereum blockchain, are indi­vis­i­ble and direct­ly trans­fer­able between users.

The tok­enized bonds are con­trac­tu­al, iden­ti­cal­ly struc­tured claims whose own­er­ship is insep­a­ra­bly linked to the tokens rep­re­sent­ing the bear­er rights themselves.