Blockchain investor coinIX invests in DEFYCA, a web3 yield protocol, providing global access for DeFi investors to the private credit markets

Hamburg, 29. September 2022 - The Hamburg based investment company coinIX GmbH & Co. KGaA, which specializes in investments in digital assets and blockchain technology, invests in DEFYCA.

DEFYCA is a Luxembourg-based company that bridges DeFi (Decentralized Finance) and TradFi (Traditional Finance) by enabling investors to invest in traditional bonds and loan portfolios via tokenized assets. Via the Web3 protocol, both individual loans and corporate loans can be securitized and made investable as crypto assets. The DEFYCA protocol thus provides investors with access to the private debt asset class and opens up the private credit markets to accredited investors, seeking real, secure and stable yields on a global basis.

With its platform, DEFYCA solves problems from two worlds. The DeFi market is known for its volatility and there are only a few ways to invest stablecoins in the short term and get a stable yield. In the traditional credit market, continuous trading does not exist and it is characterized by its lengthy and manual processes.

On the DEFYCA protocol, tokenized bonds are issued and structured into a liquid asset class on the blockchain which can be traded around the clock. Price discovery, liability matching, settlement and payment flows are executed automatically through smart contracts. This saves costs and time for the issuer and offers DeFi-investors the opportunity to earn more stable returns on stablecoins. The bonds are issued by traditional SME financing platforms, corporate bond aggregators or private debt funds. 

The protocol has been specifically designed to remove couter-party risk in trades, with instant Delivery versus Payment (DvP) settlement, specially secured MPC custodial wallets at Fireblocks, an established crypto custodian, and treasury accounts provided directly at Circle, the stablecoin issuer. Altogether this reduces the risk and enables all participants to invest and trade fixed income on the blockchain.

Alex Garmash, Co-Founder of DEFYCA: ”We are delighted to receive the support and backing of coinIX into our seed round at DEFYCA. Our mission is to unlock access for the DeFi community to invest and trade the lucrative private credit markets. coinIX is uniquely positioned to support the business as it goes to market, with their knowledge and activity in the private credit markets and their deep investment thesis in DeFi and DLT.”

Susanne Fromm, CEO of coinIX: “In the crypto market, we see many DAOs sitting on huge treasuries that they would like to invest in stable and low volatility assets. Just in June, the MakerDAO community voted to invest $500 million in short-dated US government bonds. This shows how much demand there is for fixed income on the blockchain. And it is this demand that DEFYCA’s protocol is targeting."

Press contact: Susanne Fromm, CEO, tal,

Investor Relations: Felix J. Krekel, CFO, tal,

DEFYCA’s press contact: Alex Garmash, Co-Founder,
 

About coinIX GmbH & Co KGaA

coinIX GmbH & Co KGaA, based in Hamburg, is a listed investment company and has been investing in the broad spectrum of blockchain innovation since 2017. This includes both the next stage of digitalization in traditional industries, as well as new fields such as Decentralized Finance (DeFi) or NFT/Metaverse projects. Here, coinIX invests in startup equity, early-stage token projects, and liquid cryptocurrencies. It offers one share, which is traded on the open market of the Düsseldorf Stock Exchange (WKN: A2LQ1G | ISIN: DE000A2LQ1G5 | Ticker: XCX).