Float, a Stockholm-based Capital-as-a-Service (CaaS) company, on Thursday announced the ‘Float Token’, a globally first-of-its-kind private debt asset token, in partnership with Swiss-based digital asset bank Sygnum Bank on the Polygon blockchain.
Exclusively available to Sygnum clients, the new digital instrument will provide a unique opportunity to invest into a private debt portfolio alongside Fasanara Capital, a leading institutional fintech credit fund manager, the companies said in a media statement.
The Float token has a maturity of 18 months with a fixed annual interest rate of 14 percent and quarterly interest payments.
It will provide investors exposure to a diversified portfolio of SME loans to European SaaS and technology businesses.
Float token investors additionally benefit from its on-chain proof of ownership and ease of transferability, lower ticket sizes and liquidity in Sygnum’s secondary market, SygnEx.
The token and investor rights are fully recognised and compliant under the Swiss DLT legal framework, the company said.
Fatmire Bekiri, Sygnum’s Head of Tokenisation, said the Float token marks the first time a high-yielding private market instrument is being made widely available to investors through tokenisation.
“This project emphasises Sygnum’s strategic focus on making private market assets more easily accessible and investable,” Bekiri said, adding that “it is only the first issuance with more to follow.”
Francesco Filia, CEO and Co-Founder of Fasanara Capital, said tokenised debt markets are on the cusp of going mainstream and this asset class is expected to reach $3.5 trillion by 2030.
This partnership is a breakthrough for tokenisation and we are dedicated to bringing even more debt on-chain,” he said.
Cedric Notz, CEO and Co-Founder of Float, the issuance of the Float token – the first private debt asset token – required the close collaboration of experts in lending, debt financing, and tokenisation to make it a reality.
“It is this kind of interdisciplinary, innovative partnership that will transform the face of traditional finance in the future,” Notz said.
In 2020, Sygnum was the first bank to offer a regulated, end-to-end tokenisation solution consisting of Desygnate, a primary market issuance platform, and SygnEx, a secondary market trading facility.
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