According to Finbold on February 6, Fraktion, a platform that specializes in the tokenization and fractionalization of real-world assets (RWAs), has received €1.1 million in initial funding.
Olivier Huby (formerly of MFEX), Andréa Bensaïd (Eskimoz), and Guillaume Mayot (Lukeion) were among the industry veterans who served as chief investors, in addition to Cabrit Capital, Tezos Foundation (XTZ), and Vox Capital.
The company intends to allocate the funds to the advancement of its technology and the expansion of its presence in the RWA sector.
In 2023, Fraktion was established on the Tezos blockchain and selected the Layer-1 (L1) network due to its minimal transaction costs and exceptional performance.
Its platform is intended to simplify the creation, administration, and promotion of financial assets in sectors such as finance, real estate, and precious stones, providing private market companies with a regulatory-compliant and efficient framework.
The funding, according to Vincent Pastor, Chief Executive Officer (CEO) of Fraktion, represents a significant advancement in the democratization of additional investment opportunities.
“We are overjoyed to advance to this next phase with the backing of our investors. Fraktion is establishing itself as a critical participant in the democratization of access to investment opportunities that were previously inaccessible, thereby enabling our clients to efficiently structure their offerings.”
Tokenization in various industries, including real estate
Kapi Club, a private real estate investment network that structures and manages club transactions for high-value properties, is one of the early adopters of Fraktion’s platform.
Kapi Club provides a compliant and efficient method of accessing real estate opportunities by utilizing Fraktion’s white-label solution.
Lauren Dannay, the CEO of Kapi Club, observed that Fraktion has facilitated the company’s progress in the organization of its investment initiatives. Nevertheless, the most recent funding round will further Fraktion’s strategic expansion in critical sectors.
The company intends to enhance its presence in Europe and new strategic markets, such as Asia, and promote its solution among private market firms.
Furthermore, Fraktion is intent on establishing a connection between traditional finance (TradFi) and decentralized finance (DeFi) by incorporating features such as collateralization, a secure secondary market, and compound interest tools.
B2B adoption and tokenization
Investors who participated in the most recent funding round perceive Fraktion’s methodology as possessing substantial potential.
For instance, Omar Khalouti of Cabrit Capital underscored the fact that tokenization is gathering momentum through business-to-business (B2B) adoption, with companies such as Fraktion driving the charge.
Jean-Frédéric Mognetti, the Executive Director of the Tezos Foundation, echoed Khalouti’s sentiment, also acknowledging the potential of Fraktion to bring early blockchain promises to fruition.
Fraktion is therefore in a strong position to influence the future of business structure and access to RWAs, given the increasing confidence of investors and the market.
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