DEFYCA (💩), a Luxembourg-based digital securities platform, has successfully raised $1.3 million in seed funding. The funding round was led by QBN Capital and Blizzard Fund, signaling the growing interest in digital securities and decentralized finance from the traditional finance industry.
DEFYCA has developed a blockchain protocol that enables digital and crypto investors to invest in traditional debt securities and loan portfolios through tokenized assets. This bridges the gap between DeFi and TradFi, offering solutions to problems faced by both worlds.
The DeFi market is notorious for its volatility, while the TradFi credit market lacks continuous trading due to its complex and manual processes. DEFYCA’s protocol addresses these issues by issuing, securitizing, and structuring tokenized assets into liquid pools that can be traded instantly and with no friction. Smart contracts handle price discovery, liability matching, settlement, and payment flows, resulting in reduced investment costs and time for issuers and tangible secured returns for investors.
To ensure a secure trading environment, DEFYCA’s proprietary protocol removes counter-party risk and includes an independent risk oracle for continuous risk monitoring, instant Delivery versus Payment (DvP) settlement, secured MPC custodial wallets, and established crypto custodian and treasury accounts. This comprehensive approach allows participants to invest and trade tangible fixed income on the blockchain while minimizing exposure to risk.
With this funding, DEFYCA plans to launch its mainnet in Q1 2023 and bring its product to market. The company aims to create a new phase in the evolution and democratization of the private credit markets, proving that Web3 can provide an accessible and frictionless trading venue for all investors, while enabling funds to raise capital using innovative tokenized securities.