Credefi is a European platform connecting decentralized finance (DeFi) and real-world assets. It matches DeFi lenders with financing needs of European Small and Medium-sized Enterprises (SMEs). The platform offers a regulated environment in accordance with European standards, promoting a safe and attractive channel for both investors and companies. With its pioneering model, Credefi is already transforming both the way SMEs access capital and the way investors earn returns.
Credefi’s model addresses the funding bottlenecks and obstacles that SMEs consistently encounter. Simultaneously, it satisfies DeFi investors’ appetite for high-yield, stable returns. Today the platform counts with more than 30 successful funded European SMEs. This milestone is a testament to its strength in connecting these two very different financial worlds. Credefi's growth strategy aims to achieve a $100 million tokenized bond market capitalization within the next 24 months, signaling strong confidence in its business model and future expansion.
Innovative Tokenized Bonds
To allow SMEs full access to the blockchain technology, Credefi represents these SME bonds as unique Non-Fungible Tokens (NFTs) on the platform. These tokenized bonds are currently offering gross annual yield of 22%. Coupled with a set 12-month term, they become one of the most attractive investments available to DeFi lenders. The platform additionally automates quarterly interest payments straight to the investor’s wallet for added efficiency and convenience.
The tokenized nature of bonds issued, using Credefi, adds another layer of flexibility and liquidity. This allows investors to easily resell their bonds on secondary markets, including Polytrade’s secondary marketplace. This possibility provides them an opportunity to squeeze their positions when needed. In addition, these bonds are widely used as collateral in other DeFi protocols. This helps investors to improve their yield plays and earn higher returns on their investments.
Credefi’s platform is currently in beta and already gained substantial traction adding more than 4,000 users who signed up onboarding to platform. This rapidly expanding user base is a testament to the rising demand for cutting-edge DeFi solutions that provide users with lucrative returns without compromising on security. Credefi has introduced a public R2E (Read-to-Earn) quest, rewarding users for familiarizing themselves with the platform.
Strong Performance and Security
Having proven itself through a solid portfolio thus far, Credefi is ambitious in its plans. The platform’s $4 million portfolio has had no late payment defaults, showcasing its sound risk management techniques. As of now, Credefi has already repaid more than $500,000 back to investors, showing that Credefi has fulfilled its words and everything that it promises.
To strengthen its solidity and robustness, Credefi collaborates with three banks which ensure some bond emissions. Partnerships like these ensure that there’s even more protection for investors directly, while making sure that investors have confidence in the entire ecosystem built around the platform. Credefi differentiates itself from other DeFi platforms with the highest security standards and risk management strategies. This level of commitment makes it one of the most trusted players on the market.
Regulatory Compliance and Future Growth
As a project operating under European regulations, Credefi places a strong emphasis on regulatory compliance to provide a secure and transparent environment for its users. This dedication to regulatory compliance is what makes it unique within the mostly unregulated DeFi industry. It provides investors with extra confidence. Credefi’s attention to compliance is the primary pillar of its success in attracting institutional and retail investors.
All in all, Credefi is hands down more focused on expanding its own partner SMEs’ networks. Simultaneously, it seeks to boost the amount of tokenized bonds underwritten on its platform. The firm hopes to capitalize on its lofty performance streak and record funding inflow from investors. It aims to achieve $100 million in tokenized bond market capitalization in the next 24 months. Currently, Credefi is looking for partnerships with other DeFi protocols. Combined with its wide-ranging COVID-emergency integrations, these new additions are sure to round out its platform and deliver even greater value to users.
