Babel Finance, a leading global crypto financial services provider, announced today that it has successfully issued the first collateralised USDC note via eNotesTM, a smart contract-based global debt instrument, provided by blockchain start-up FQX AG on their Solana environment.
The transaction was executed using a Fireblocks custody wallet. The principal was provided by a Swiss investment firm and secured with smart contract-based collateral denominated in SOL. For the delivery-versus-payment as well as for the collateral management, FQX’s decentralised escrow programs were used. The transaction was initiated using FQX’s Telegram program.
eNotes are blockchain-based debt instruments which are recognized around the globe and can be used for a broad variety of financing purposes. By providing a legal layer for decentralised financing, FQX eNotesTM increase legal certainty and optimize the loan-to-value ratio in the massively overcollateralized DeFi space.
Via Wallet Connect’s Solana gateway to Fireblocks, Fireblocks customers will be able to sign and issue transferable debt instruments in seconds using FQX’s eNote dApp.
“Digitization has been transforming traditional asset classes for over twenty years, with tokenization being the next phase of the evolution,” said Richard Astle, Head of Switzerland & Middle East at Fireblocks. “Prolonged manual processes, limited secondary market liquidity, and mostly bilateral settlements offer a number of areas in debt markets which can be improved by blockchain and smart contracts. Through tokenization, investors are able to participate with smaller transaction sizes than traditional debt issuance, making it much more accessible to the broader market. We’re proud to support new innovations like FQX’s eNotes with Fireblocks’ technology so that more traditional assets can benefit from blockchain’s transparency, security, and speed”, he added.
This transaction marks the beginning of eNotes on Solana. This will help Babel Finance widen their funding sources. For traditional financial institutions that intend to invest in crypto assets, this innovative fixed-income crypto financial product is an investment channel with stable returns and controlled risks. “We are very excited about the launch of this innovative product and very optimistic about the market prospects for crypto note and bond products using FQX’s eNotes,” said Yulong Liu, Partner of Babel Finance. “Babel Finance will continue to leverage our strengths in product innovation and work with our partners to expand this market,”.
Benedikt Schuppli Co-CEO of FQX stated: “With eNotes on Solana, accessible via Fireblocks, we drastically reduce economic distance between borrowers and lenders in a cross-border setting and make financing overall radically easier”.
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves over 800 financial institutions, has secured the transfer of over $2 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit.
Babel Finance is a global leading crypto financial services provider, offering institutional and HNWI investors professional services covering crypto lending and crypto trading. The company is backed by prominent investors including Sequoia Capital China, Tiger Global Management, BAI Capital, Zoo Capital, Dragonfly Capital, and NGC Ventures. Babel Finance has established close cooperative relationships with major global exchanges, custodians, investment funds, and mining institutions.
FQX is a born-global start-up headquartered in Zurich, Switzerland. FQX is building the lending infrastructure for Web 3.0. FQX employs more than 20 people in Europe & Asia. FQX has garnered attention in 2021 by winning the Swiss Fintech and the Fintech Germany Awards in its respective categories. FQX is backed by notable Tech investors, among them SIX Fintech Ventures & Earlybird VC.