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Float, Sygnum, and Fasanara join forces to tokenize private debt markets

Use Cases Tokenization

Float, a Swedish fintech pioneer, in collaboration with Sygnum Bank and Fasanara Capital, a leading institutional fintech credit fund manager, launched a tokenized approach to private debt investing, providing access to a diversified portfolio of European SME loans, with a focus on SaaS and technology sectors.

Transitioning to DLT for greater capital efficiency

Float’s strategic focus addresses the gap in the market where traditional credit institutions have historically overlooked the SaaS sector, thereby allowing Float to offer superior risk-adjusted returns. By transitioning to Distributed Ledger Technology (DLT), Float sought to optimize its mezzanine capital pool, modernize its operations, and attract a broader range of investors.

 


Key Collaborators

  • Float: Offered investors access to a diversified portfolio of SME loans across the European SaaS and technology sectors.
  • Sygnum Bank: Delivered digital asset banking, tokenization expertise and facilitated regulatory-compliant issuance via its primary issuance platform, Desygnate.
  • Fasanara Capital: Served as a senior lender to the loan portfolio.

Empowering investments in tech with Float token

The project resulted in the issuance of the FLOAT1 token – an interest-bearing note backed by mezzanine debt from Float’s diversified loan portfolio and offered the following benefits:

  • Improved capital efficiency: By transitioning to blockchain, Float was able to enhance the capital efficiency of its operations and improve access to mezzanine capital.
  • Wider investor access: Float made its loan portfolio more accessible to a wider range of investors by reducing the minimum ticket size to CHF 5’000, while ensuring regulatory compliance.
  • Optimized investment process: Float could benefit from the seamless integration of tokenization with Sygnum’s banking services, ultimately offering a more efficient, transparent, and secure way to invest in private debt.

Continued success with FLOAT2 Token

Building on the success of the FLOAT1 token, Float and Sygnum responded to increased demand for this product by issuing the FLOAT2 token the following year. The second issuance was met with equal enthusiasm, reaffirming the market’s appetite for tokenized debt instruments and expanding the investor base further.

Shaping the future of Private Debt Markets

Tokenization enabled Float to effectively deploy capital, expand its investor base, and streamline the investment process, offering an improved approach to private debt investments.

The FLOAT1 token marked a significant milestone as one of the first high-performing private market instruments made widely available to Sygnum investors, setting a benchmark for innovation in this sector.

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