DEFYCA, a Luxembourg-based digital securities platform has completed a seed funding round of $1.3 million USD led by QBN Capital and Blizzard Fund. The company makes private credit investment more accessible and more cost-effective.
DEFYCA has developed a blockchain protocol that enables digital and crypto investors to invest in traditional debt securities and loan portfolios via tokenized assets. By bridging DeFi (Decentralized Finance) and TradFi (Traditional Finance), DEFYCA is solving problems from two worlds.
The DeFi market is commonly known for its volatility, and there are only a limited number of ways to invest stablecoins in the short-term, while retaining a stable secured yield. In the TradFi credit market, continuous trading is non-existent. This is a direct result of its lengthy, complex, and manual processes.
DEFYCA’s proprietary protocol has been specifically designed to remove counter-party risk in trades. It includes an independent risk oracle for continuous risk monitoring, instant Delivery versus Payment (DvP) settlement, specially secured MPC custodial wallets, an established crypto custodian, and treasury accounts provided directly at Circle, the stablecoin issuer. In total, enables all participants to invest and trade tangible fixed income on the blockchain while significantly reducing their exposure or risk.
The seed funding will be used to launch the protocol and take the product to market, taking advantage of the growing interest in digital securities and decentralized finance from the traditional finance industry. DEFYCA will launch its mainnet in Q1 2023. Issuers and investors who want to try out the testnet can sign up for an account here.