Our Luxembourg securitization structures and funds network enable Managers to launch compliant tokenized funds in the private markets in minutes. Frictionless Institutional Deposit Tokens enable Investors to invest in private placements instantly, securely, and risk-free at low cost in multiple currencies. The Frictionless protocol removes all the complexity of cash-ops for Managers and GPs via our instant settlement technology. Deployed on Avalanche, The Frictionless Institutional Deposit Token:
- Eliminates manual KYT and its costs — All network participants are permissioned under the AML6 directive, and transactions are only permitted between permissioned counterparties. Sophisticated and fine-grained sanctioning control ensures that fund flows are always compliant.
- Seamless FIAT multi-currency on-ramp & off-ramp — Deposits and withdrawals are processed directly at Citi using our automated fund wire solution.
- Massively reduces transaction costs — Onchain payment and settlement finality of securities can be conducted for as little as 2 cents per transaction compared to tens and sometimes hundreds of dollars when conducted on the existing SWIFT system.
- Executes complex FX instantly — Investors and Managers can issue, invest and settle in multiple currencies automatically with the best FX rates in the market.
- Fully attested daily — the appointed Fund Accountants provide legal & compliant attestations of all balances in each cash custodian account, ensuring there is always full visibility and trust in the basis of the underlying of Frictionless Institutional Deposit Tokens.
- Risk-off Stablecoins — Permisionless stablecoins, such as USDC and USDT are a great innovation from the crypto markets which were designed for permissionless crypto referencing to US Dollars, however handling stablecoins for traditional institutional partners is still a risky proposition. Institutional Deposit Tokens can be converted to/from stablecoins using the Frictionless protocol to help Managers accept stablecoins whilst off-loading their associated risks, such as de-peg events, underlying community bank reliance, and liquidity risks.
Delivered on Citi bank cash custodian and AlphaFX spot and forward services, our Institutional Deposit Tokens are a perfect solution for Managers and GPs seeking a highly optimized, transparent, and cost-effective solution for raising capital, managing cash-ops, cash waterfalls, and distributions within their funds.
Our protocol is built on the ERC-3643 specification for institutionally compliant tokenized securities and atomic settlement. The protocol audit was conducted by industry experts Hacken.io and scored 10/10, assuring our institutional partners and clients of our commitment to the highest security standards.
