ACCESS Newswire
13 Jan 2022, 14:13 GMT+10
STUTTGART, GERMANY / ACCESSWIRE / January 13, 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 )
Pragmafy is a technical protocol that enables borrowers and lenders to connect and execute asset-based financing transactions, using distributed ledger technology (DLT). The community-driven network focuses on solving the financing need for businesses operating crypto Real World Assets (cRWA), such as mining equipment and data centers, closing the gap between the rising crypto-native industry and traditional finance institutions.
Press contact:
Jocelyne Royer
Tokenfabrik
[email protected]
SOURCE: Tokenfabrik UG
Get a daily dose of Detroit Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Detroit Star.
More InformationMADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
(Photo credit: David Richard-Imagn Images) Riley Greene, Javier Baez and Gleyber Torres will start in the All-Star Game this month,...
(Photo credit: Eric Canha-Imagn Images) Boston right-hander Walker Buehler looks to put a horrid six-start stretch behind him when...
(Photo credit: Kamil Krzaczynski-Imagn Images) The Chicago Cubs set a franchise record by bashing eight home runs in a single game...
(Photo credit: Michael C. Johnson-Imagn Images) Felix Ojo, a five-star offensive tackle, will stay in his home state of Texas after...
(Photo credit: Ken Blaze-Imagn Images) Wenceel Perez and Zach McKinstry hit solo home runs and four Detroit pitchers combined for...
(Photo credit: Chadd Cady-Imagn Images) The Tampa Bay Rays will begin their long, strange trip to the All-Star break when they face...