Swiss digital asset bank Sygnum collaborates with European SaaS lender float to tokenize a portion of its portfolio, aiming to enhance liquidity and broaden investor access.
Tokenization in private credit markets is gaining momentum, with Fasanara Capital predicting a surge in tokenized assets, expecting this asset class to reach a staggering USD 3.5 trillion by 2030.

In a significant development in the Software as a Service (SaaS) domain, Swiss digital asset bank Sygnum has taken a pivotal step by aligning with European SaaS lender float. This strategic move aims to tokenize a section of float’s portfolio via Sygnum’s Desygnate tokenization offering. This marks a substantial shift in financing options available to SaaS businesses, allowing them to bypass traditional venture capital routes.

In this venture, UK hedge fund Fasanara Capital, with assets under management totaling $4 billion, takes the role of senior lender, placing the tokens in a junior position. This configuration implies a higher risk but also a potential for higher returns. The tokens carry an 18-month maturity period and offer a generous 14% per annum return, all under the umbrella of Switzerland’s progressive DLT laws.

Unlocking Liquidity through Tokenization

Tokenization stands out as an advantageous option primarily because it transforms an otherwise illiquid investment into something more fluid. Sygnum facilitates this by providing access to a secondary market, SygnEx. Additionally, the reduced ticket size inherent to tokenization widens the pool of potential investors, although it’s important to note that Sygnum’s target audience does not typically include average retail investors. The combination of fractional ownership and the secondary market significantly enhances liquidity.

Francesco Filia, CEO and Co-Founder of Fasanara Capital, is bullish about the future of tokenized debt markets, predicting that this asset class will burgeon to an impressive USD 3.5 trillion by 2030. He acknowledges this partnership as a critical advancement in tokenization, emphasizing their commitment to integrating more debt into the blockchain.

Future Prospects and Asset Classes

The chosen platform for issuing the token is the Polygon blockchain. This decision reflects the ongoing industry discourse on which sectors stand to gain the most from tokenization. Illiquid and less efficient asset classes such as private credit and private equity are considered prime candidates due to their potential for enhanced efficiencies and liquidity. Public equity markets, being comparatively liquid already, do not present as attractive options for tokenization. Last year, BCG projected a staggering $16.1 trillion in tokenized assets by 2030, showcasing the burgeoning interest and potential in this innovative financial strategy.

To understand the full context of this development, one can refer to a blockchain article highlighting the intricacies and business innovations revolving around bank Sygnum, particularly in the realm of tokenization and SaaS financing.

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Filed under: Bitcoin - @ October 29, 2023 7:05 pm