- Float and Sygnum Bank have partnered to introduce the Float Token, a digital representation of private debt assets.
- The token offers investors an 18-month maturity and a fixed annual interest rate of 14%.
- It provides exposure to a diversified portfolio of loans to European SaaS and technology SMEs.
Float and Sygnum Bank have teamed up to introduce the Float Token, a digital representation of private debt assets that will be exclusively available to Sygnum clients.
This token presents an opportunity for investors to engage in a private debt portfolio alongside Fasanara Capital, a well-known institutional fintech credit fund manager.
The Float Token has some noteworthy features. It comes with an 18-month maturity and a fixed annual interest rate of 14 percent. Investors can also look forward to receiving quarterly interest payments and gaining exposure to a diversified portfolio of loans to European SaaS and technology small to medium-sized enterprises (SMEs).
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Investors holding the Float token will enjoy several advantages, including on-chain proof of ownership, easy transferability, lower minimum investment sizes, and access to liquidity in Sygnum’s secondary market, known as SygnEx. Moreover, it’s important to note that the token and its associated investor rights are fully compliant with the Swiss DLT (Distributed Ledger Technology) legal framework.
Fatmire Bekiri, who serves as the Head of Tokenisation at Sygnum, emphasized that the Float Token represents a groundbreaking move in making high-yield private market instruments widely accessible through tokenization for the first time.
Fasanara Capital, a significant player in the European tech-enabled credit fund management scene, acts as the senior lender in this initiative. The company manages an impressive sum of over USD 4 billion in assets under management (AuM) in fintech strategies. Their dedication to bringing more debt onto blockchain technology is contributing to the growth of tokenized debt markets, which experts predict will reach a staggering USD 3.5 trillion by 2030.
Cedric Notz, the CEO and Co-Founder of Float, pointed out the resilience of Revenue-Based Lending (RBL) in the context of European SaaS businesses, highlighting its strong risk-return profile. He sees the Float Token as a groundbreaking private debt asset token that symbolizes a forward-looking and innovative partnership poised to revolutionize the traditional financial landscape.
Sygnum, as the first bank to offer a regulated, end-to-end tokenization solution in 2020, continues to provide investors with trusted access to asset classes that were once challenging to enter. Private debt markets, previously hard to access, are now within reach for investors in a direct, fully compliant, and fractional manner through platforms such as Desygnate and SygnEx.