Defactor provides a platform through which asset originators from around the world can access decentralized finance liquidity pools to provide business lending and trade financing. Defactor recently announced it raised $1 million within two weeks of entering the market and is halfway through its total raise of $3.3 million.
Defactor’s backers include a significant number of venture capitals and investors including Sors Digital Assets, co-founder and chief operating officer of Centrifuge Martin Quensel, Megala Ventures, 6K Starter, BoostX, BlockMint, Dutch Crypto Investors, Decentral, Creation Ventures, ConsolFreight and Atom CTO.
Ernesto Vila, CEO of Defactor, commented on the announcement, stating:
“We want to thank all of our early backers and investors for becoming strategic partners of Defactor. We have no doubt our partners will allow us to take our project to the next level, helping to realize our vision of providing an easy-to-use solution for asset originators looking to access trade finance.”
Jordan Andrew of blockchain investment firm 6K Starter commented:
“When we invest in DeFi protocols, we look for strong teams that are relentless experts in their craft. We invested in Defactor as its team is highly experienced in the world of logistics and finance, with prior history in building a Forbes financial technology 50 nominated company in asset origination.”
“The Defactor platform brings a unique solution to the table, removing factors that make logistics inefficient. This team is delivering a multi-trillion dollar market of trade to DeFi. We at 6K Starter are committed to Defactor, just as Defactor is committed to bridging the gap between DeFi and real-world assets,” added Andrew.
“Defactor is a true cross-industry disruptor to look out for in 2021 and the years to come.”
Defactor bridges the gap for firms that are looking for financing but are unable to get it, and DeFi liquidity providers who are looking to earn secure, asset-backed yields. It’s one of the first-ever projects to bring real-world assets into the DeFi space.
Defactor’s platform is accessible to asset originators, lowering the barriers they face when entering the DeFi space. It also has risk profiles for each of its different asset classes, so liquidity providers have an understanding of who they’re lending to and can choose a level of risk — and the corresponding yield — which suits their requirements.
Having built and operated platforms in the trade finance space that have provided millions of dollars worth of DeFi financing to asset originators, the team behind Defactor has already had a string of successes under its belt in the DeFi space including onboarding by Maker, which delivers DeFi to real-world asset owners, and Centrifuge, a system of tokenizing physical assets.
Defactor plans to launch its FACTR token in Q3 2021 and will be live with a number of new asset classes towards the end of the year. Defactor has already onboarded several leading asset originators who will be the future users of the platform, and recently announced ConsolFreight, the leading real-world asset originator for trade finance, as its strategic partner and earliest adopter.
Defactor is building the integration and risk management tools to bring new asset classes from the real world to DeFi investment pools for financing. There is a massive funding gap in many areas of business financing globally. DeFi provides an alternative source of funding as well as the tools and expertise to bring it to scale.