Defactor Lending Protocol Raises $100M in Bond Tokenization for Small Businesses

Decentralized finance (DeFi) lending platform Defactor Labs announced on June 6 that it has achieved a significant milestone by tokenizing $100 million worth of Alpha Bonds.

These bonds, which have been tokenized using the ERC-3643 token standard, will be utilized to provide loans to small- and medium-sized enterprises (SMEs), backed by real-world assets like receivables.

To ensure compliance and legal guidance, Defactor Labs collaborated with law firm CMS, with Luxembourg being chosen as the governing jurisdiction for the instrument.

Black Manta Capital Partners played a crucial role by providing a broker-dealer license and a marketplace powered by Tokeny’s ERC-3643 tokenization engine for Alpha Bonds.

Introduced in 2021 by inventors Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin, and Adam Boudjemaa, the ERC-3643 token standard sets the bar for identity registry, storage, and compliance of tokens on regulated exchanges.

Tokeny, the company behind the tokenization engine, reports that over $28 billion worth of instruments have been tokenized across 180 jurisdictions using the ERC-3643 standard.

During the pilot testing phase, Defactor Labs developers facilitated transactions worth over $30 million through Alpha Bonds, with $2 million allocated to project financing.

Alejandro Gutierrez, CEO and co-founder of Defactor Labs, expressed the platform’s aim to enable institutional investors to access DeFi in a compliant manner while providing liquidity options within an open network.

The tokenization of $100 million worth of bonds using the ERC3643 standard is a significant step toward achieving this goal.

In a previous report, Cointelegraph highlighted the surge in Defactor Labs’ native token, FACTR, following promotion by Chinese telecommunications conglomerate Huawei on its social channels.

In a short video, CEO Alejandro Gutierrez emphasized Defactor Labs’ mission to bridge traditional finance with DeFi, explore the tokenization of real-world assets, and establish partnerships with both startups and large corporations.