DGAP-News: Tokenfabrik UG / Key word(s): Financing/Cryptocurrency / Blockchain
13 January 2022 The Pragmafy Association, founded by the German blockchain firm Tokenfabrik (www.tokenfabrik.de), announced the first successful asset-based financing transaction, a $1m collateralized loan, on its platform. The raised funds were utilized by the borrower to purchase additional crypto mining hardware for scaling up its business. The newly acquired hardware itself serves as collateral to the loan.
The transaction involved three parties (lender, borrower and seller) and was executed on-chain using the Pragmafy protocol. The on-chain activity thereby included the loan contract itself, as well as the collateral linked to it. The smart contract-executed payments include all cash flows and installments. This milestone is a major move for the protocol on its mission to redefine finance and bring automated decentralized financial transaction processes to the machine economy and smart ecosystems.
Focusing on crypto Real-World Asset (cRWA) financing, Pragmafy's first deal has provided the ideal infrastructure for M Credit Pte Ltd., a Singapore-based, crypto-mining financing company, to execute their latest transaction fully digitally. On January 12th at 9 a.m. CET, the deal was executed by the three parties with the lender transferring 1M USDT through Pragmafy's infrastructure, using an Ethereum- based NFT token contract which holds the original loan contract as proof and collateral. The initial loan, along with all future payback payments, will be orchestrated through the smart contract.
The loan transaction occurred within Pragmafy's pilot project phase, which aims to validate the company's business hypothesis: enabling Real-World Asset financing and sourcing liquidity through decentralized crypto networks. Pragmafy focuses on enabling cRWA financing for cryptocurrency miners, datacenter infrastructure, and other crypto hardware, such as Helium gateways and Filecoin infrastructure. Pragmafy aims to become the go-to solution for borrowers and lenders to connect in a simplified and trusted way, with participants from both TradFi and DeFi. On the DeFi side, Pragmafy's approach will create new yield opportunities within DeFi by connecting the crypto ecosystem to real-world business.
Pragmafy's initial idea was developed by Tokenfabrik and further refined during Outlier Ventures' Base Camp accelerator program in 2021. Through the program's network, Pragmafy gained access to crypto mining ecosystems, which significantly supported the project's go-to-market strategy.
According to Dimitrios "Dimi" Chatzianagnostou, co-founder and association chairman of Pragmafy, the transaction proves that both the deployed technology and the project are ready to deliver results. "After a short period since August 2021, we were able to build a capable team, reached out to deal partners, and finally executed this important deal on our first protocol modules. We are excited to start the year with this achievement under our belt and are looking forward to upcoming opportunities and potential new deals in 2022." Asked about further business prospects, Dimi mentioned a strong tailwind in both the cRWA financing space, as well as in digital asset projects with traditional industrial players.
M Credit founder Thomas Ka Seng Ao said: "We are excited to take part in Pragmafy's pilot program and lead one of the first cRWA loan transactions on-chain. We are convinced that Pragmafy's protocol forms an essential base for asset-based financing through decentralized processes, less intermediaries and a higher degree of efficiency and trust".
About Pragmafy (www.pragmafy.io)
13.01.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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