Fraktion Raises €1.1 Million to Boost RWA Tokenization and Investment

• This assistance is provided for a variety of purposes, including real estate projects, precious stones, and financial assets.
• In a matter of days, enterprises are able to establish a safe, regulation-compliant investing platform with complete KYC/AML integration.

An end-to-end solution for tokenizing and fractionalizing real-world assets (RWAs), Fraktion has raised €1.1 million in its seed funding round from prominent business angels like Olivier Huby (ex-MFEX), Andréa Bensaïd (Eskimoz), and Guillaume Mayot (Lukeion), as well as strategic investors like Cabrit Capital, Tezos Foundation, and Vox Capital.

Midway through the year 2023, Fraktion was launched on the Tezos blockchain. The team behind Fraktion chose the Layer-1 network due to its high performance and cheap transaction fees. Fraktion will be able to increase its influence in the real-world asset sector and speed up the development of its technological platform thanks to the funding that was disclosed today. In the creation, administration, and marketing of financial assets, Fraktion provides assistance to private market enterprises. This assistance is provided for a variety of purposes, including real estate projects, precious stones, and financial assets. Additionally, Fraktion ensures regulatory compliance and simplicity of use.

Vincent Pastor, CEO of Fraktion stated:

“We are thrilled to take this next step with the support of our investors. Fraktion is positioning itself as a key player in democratizing access to previously inaccessible investment opportunities and enabling our clients to efficiently structure their offerings.”

Use cases already live in Real Estate

Kapi Club, a private real estate investment network that makes use of Fraktion to create and handle club transactions for high-value projects, is one of the first platforms that has been deployed.

Lauren Dannay, CEO of Kapi Club stated:

“Fraktion has enabled us to take a significant step forward in structuring our investment projects. Their platform provides a modern and efficient solution to meet the growing expectations of investors for simplicity, transparency, and performance”

In a matter of days, enterprises are able to establish a safe, regulation-compliant investing platform with complete KYC/AML integration thanks to the white-label solution offered by Fraktion. This allows partners to immediately start under their own brand.

Funding to fuel expansion and innovation

Omar Khalouti from Cabrit Capital stated:

“We firmly believe that tokenization will see widespread adoption through B2B channels, with companies like Fraktion empowering businesses to seamlessly structure tokenized offerings. We are excited to support this highly methodical and forward-thinking team as they lead the charge in driving this transformation.”

Because of this funding, Fraktion will be able to:

• Scale the commercial deployment of its solution: Increase the rate of adoption among private market companies that are looking for effective tools to manage their investment projects.
• Expand internationally: The presence of Fraktion should be strengthened in new markets, with a particular emphasis on Europe and other strategic regions such as Asia.
• Develop innovative products to bridge TradFi and DeFi: Initiate the implementation of sophisticated features such as collateralization, a secure secondary market, and tools regarding compound interest.

Commenting on the news, Jean-Frédéric Mognetti, Executive Director of the Tezos Foundation, said:

“By providing a platform to securely tokenize and manage investments while maintaining regulatory compliance, Fraktion is delivering on one of the early promises of blockchain technology and democratizing investment in physical assets. Fraktion is a great example of what’s possible on Tezos and we are delighted to provide our continued support to the team as they realise their vision.”

A software as a service (SaaS) solution that is devoted to the tokenization and administration of real-world assets, Fraktion is an end-to-end solution. By providing its business-to-business customers with technology that combines ease of use and performance, Fraktion makes it possible for them to rapidly create investment platforms while simultaneously lowering their operating expenses and increasing investor loyalty.

Early-stage companies that are pushing the widespread use of blockchain technology are the focus of Cabrit Capital’s investment activities. It functions under the umbrella of Ajeej Capital, which is a well-established asset manager located in Dubai, and is administered by a group of individuals who have experience in blockchain technology, venture capital, and institutional asset management.

Additionally, Tezos is an open-source and energy-efficient blockchain that was developed with the intention of empowering companies, developers, and institutions while also facilitating the transfer of value in a digital setting. It is developed for the scalable deployment of decentralized applications. As one of the first Proof of Stake blockchains, Tezos is worldwide supported and recognized for its robust governance, long-term upgradability, and smart contract capabilities.