Zurich, May 19, 2022 — Babel Finance, a leading global crypto financial services provider, announced today that it has successfully issued the first collateralized USD Coin (USDC) note via eNotes, a smart contract-based global debt instrument provided by blockchain startup FQX AG, for its Solana environment.
The transaction was executed using a Fireblocks custody wallet. The principal was provided by a Swiss investment firm and secured with smart contract-based collateral denominated in Solana (SOL). For delivery-versus-payment and collateral management, FQX’s decentralized escrow programs were used. The transaction was initiated using FQX’s Telegram program.
An eNote is a blockchain-based debt instrument recognized globally and used for a broad variety of financing purposes. By providing a legal layer for decentralized financing, FQX eNotes ensures legal certainty and optimizes the loan-to-value ratio in the massively overcollateralized decentralized finance space. Via Wallet Connect’s Solana gateway to Fireblocks, the latter’s customers can sign and issue transferable debt instruments in seconds using FQX’s eNote decentralized app (DApp).
“Digitization has been transforming traditional asset classes for over twenty years, with tokenization being the next phase of the evolution,” said Richard Astle, head of the Switzerland and Middle East sector at Fireblocks. “Prolonged manual processes, limited secondary market liquidity and mostly bilateral settlements offer a number of areas in debt markets, which can be improved by blockchain and smart contracts. Through tokenization, investors are able to participate with smaller transaction sizes than traditional debt issuance, making it much more accessible to the broader market. We’re proud to support new innovations such as FQX’s eNotes with Fireblocks’ technology so that more traditional assets can benefit from blockchain’s transparency, security and speed.”
The transaction marks the beginning of eNotes on Solana and will help Babel Finance widen its funding sources. For traditional financial institutions that intend to invest in crypto assets, this innovative fixed-income crypto-financial product is an investment channel with returns and risks.
“We are very excited about the launch of this innovative product and very optimistic about the market prospects for crypto note and bond products using FQX’s eNotes,” said Yulong Liu, partner of Babel Finance. “Babel Finance will continue to leverage our strengths in product innovation and work with our partners to expand this market.”
Benedikt Schuppli, co-CEO of FQX, said, “With eNotes on Solana [and] accessible via Fireblocks, we [can] drastically reduce the economic distance between borrowers and lenders in a cross-border setting and make financing, overall, radically easier.”
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing and issuing digital assets. Fireblocks allows exchanges, lending desks, custodians, banks, trading desks and hedge funds to securely scale digital asset operations through the Fireblocks network and multiparty computation-based wallet infrastructure. Fireblocks serves more than 800 financial institutions, has secured the transfer of $2 trillion-plus in digital assets and has a unique insurance policy covering assets in storage and transit.
For more information, visit fireblocks.com.
Babel Finance is a global leading crypto financial services provider offering institutional and high-net worth investors professional services in crypto lending and crypto trading. The company is backed by prominent investors, including Sequoia Capital China, Tiger Global Management, Bai Capital, Zoo Capital, Dragonfly Capital and NGC Ventures. Babel Finance has established close, cooperative relationships with major global exchanges, custodians, investment funds and mining institutions.
For more information, visit babel.finance.
FQX is a born-global startup headquartered in Zurich, Switzerland focused on building the lending infrastructure for Web3. FQX employs more than 20 people in Europe and Asia and garnered attention in 2021 by winning the Swiss Fintech and Fintech Germany awards in its respective categories. FQX is backed by notable technology investors, including Six Fintech Ventures and Earlybird Venture Capital.
For more information, visit enotes.tech.
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