On June 6, Defactor Labs, a prominent decentralized finance (DeFi) lending platform, announced the successful tokenization of $100 million worth of Alpha Bonds.
These bonds, which have been tokenized on the Polygon network, will be lent to small- and medium-sized enterprises, utilizing real-world assets like receivables as collateral.
Partnerships and Legal Framework
Defactor Labs collaborated with law firm CMS to establish legal guidelines and documentation for the tokenization process. Luxembourg was chosen as the governing jurisdiction for these instruments.
Additionally, Black Manta Capital Partners provided a broker-dealer license, while Tokeny’s ERC-3643 tokenization engine powered the marketplace for Alpha Bonds.
The Significance of ERC-3643 Token Standard
ERC-3643, invented in 2021 by Joachim Lebrun, Tony Malghem, Kevin Thizy, Luc Falempin, and Adam Boudjemaa, serves as a standard for identity registry, storage, and compliance of tokens on regulated exchanges.
Tokeny reports that the ERC-3643 standard has been utilized to tokenize over $28 billion worth of instruments across 180 jurisdictions worldwide.
Successful Pilot Testing and Future Goals
During the pilot testing phase, Defactor Labs developers conducted transactions worth over $30 million with Alpha Bonds, with $2 million allocated for project financing.
Alejandro Gutierrez, CEO and co-founder of Defactor Labs, expressed the platform’s vision, stating that tokenizing $100 million worth of bonds using the ERC-3643 standard not only enables institutional investors to access DeFi compliantly but also provides liquidity options within an open network.
Defactor Labs’ Mission to Bridge Traditional Finance and DeFi
Earlier this year, Defactor Labs garnered attention when its native token, FACTR, experienced a significant surge of 550% after Chinese telecommunications conglomerate Huawei showcased the project on its social channels.
In a brief video, Gutierrez emphasized Defactor Labs’ objective of bridging traditional finance with DeFi, exploring the tokenization of real-world assets, and forging partnerships with both startups and large corporations.