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 Pittsburgh 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 Pittsburgh Star.
More InformationMINNEAPOLIS, Minnesota: General Mills has lowered its annual sales and profit forecasts, citing weakening demand for salty snacks and...
NEW YORK CITY, New York: A Delta Air Lines plane's wing hit the runway at LaGuardia Airport during a rough landing over the weekend....
NEW YORK CITY, New York: Severe storms and tornadoes continued to threaten parts of Pennsylvania, New York, and several Mid-Atlantic...
(Photo credit: Rick Scuteri-Imagn Images) The New York Yankees signed pitcher Jake Woodford to a minor league contract, MLB Trade...
(Photo credit: John Hefti-Imagn Images) Jimmy Butler is not thinking about the Miami Heat. Heat coach Erik Spoelstra said he isn't...
(Photo credit: Sam Navarro-Imagn Images) Brandon Nimmo launched a three-run home run in the bottom of the ninth for the New York...
NEW YORK CITY, New York: New York State's highest court has struck down a law this week that would have allowed over 800,000 legal...
The death toll in Gaza on the weekend has passed 50,000, local health authorities have reported. What started the carnage was the Hamas-led...
WASHINGTON, D.C.: The U.S. Department of Agriculture (USDA) has announced plans to invest up to US$100 million in research to develop...
WASHINGTON, D.C.: The U.S. Department of Health and Human Services (HHS) has removed a 2024 advisory from its website that called gun...
WASHINGTON, D.C.: Industry leaders are pushing the Trump administration to clear regulatory obstacles slowing the rollout of self-driving...
NEW YORK, New York – Israeli military forces caused deaths and unnecessary suffering of Palestinian patients while occupying hospitals...