Tokenized Mezzanine Debt Secondary Market

Unlock trapped capital by enabling 24/7/365 secondary trading. This transforms a 6-12 month manual settlement process into near-instant atomic settlement.

• Real Example: A private equity firm can sell a portion of its debt position to meet a capital call without a lengthy, negotiated off-market sale.
• ROI Impact: Reduces the liquidity premium demanded by investors, potentially lowering the cost of capital by 150-300 basis points.

Embed regulatory and transfer restrictions (Reg D, Reg S) directly into the token's smart contract. This automates KYC/AML checks and creates an immutable, verifiable chain of custody.

• Real Example: Automated blocking of transfers to unauthorized jurisdictions, replacing manual legal reviews for every trade.
• ROI Impact: Cuts compliance overhead by ~70% and eliminates audit preparation costs, providing a clear, real-time ledger for regulators.

Gain real-time visibility into pricing and ownership across the entire capital stack. A permissioned, transparent ledger provides a single source of truth for all stakeholders.

• Real Example: LPs can see the real-time performance and secondary market price of their mezzanine investments, improving portfolio reporting.
• ROI Impact: Enables data-driven decisions, reduces valuation disputes, and provides early warning signals for covenant breaches or defaults.

Remove intermediaries and manual processes for custody, administration, and transfer. Smart contracts automate coupon payments, capital calls, and waterfall distributions.

• Real Example: Automating interest payments to hundreds of token holders, eliminating the need for a third-party administrative agent and reducing error rates to near zero.
• ROI Impact: Projects 30-50% reduction in annual administrative costs and eliminates costly reconciliation errors between fund administrators and transfer agents.

Fractionalize large debt positions to attract a broader, global base of institutional investors. Programmable tokens can represent different risk tranches or cash flow rights.

• Real Example: A $50M mezzanine loan can be tokenized into 5,000 $10,000 units, allowing smaller family offices and funds to participate.
• ROI Impact: Accelerates capital raising, diversifies the investor base, and creates a more competitive bidding environment for new issuances.

Position your treasury and investment strategy for the convergence of traditional finance and digital assets. Tokenization is the bridge to on-chain treasuries, DeFi liquidity pools, and automated hedging strategies.

• Real Example: Using tokenized debt as collateral in a permissioned DeFi pool to secure a short-term liquidity facility.
• ROI Impact: Creates optionality and strategic advantage in a market moving toward programmable finance, protecting against disruptive competitors.

Embed regulatory rules and KYC/AML checks directly into the token's smart contract. Transactions automatically verify investor accreditation and jurisdictional compliance, creating an immutable, auditable trail.

• The Pain Point: Manual compliance for private securities is costly, slow, and error-prone.
• The Blockchain Fix: Smart contracts enforce transfer restrictions in real-time. Audit preparation time is slashed as all ownership history and compliance checks are on-chain.
• ROI Impact: Cuts administrative and legal overhead by an estimated 30-50%, while significantly mitigating regulatory risk.

Provide all market participants with a single source of truth for loan performance, payment history, and ownership. This transparency reduces due diligence friction and information asymmetry.

• For Lenders: Demonstrate portfolio performance to limited partners with real-time, verifiable data.
• For Investors: Access standardized, tamper-proof records of underlying asset performance before purchasing a tokenized position.
• Business Value: Builds investor confidence, potentially lowering the required risk premium and attracting a broader capital base.

Use smart contracts to automate interest payments, fee distributions, and covenant monitoring. Payments are executed automatically to token holders' wallets based on predefined rules.

• Eliminates Manual Processes: No more manual calculation of pro-rata interest payments or chasing wiring instructions.
• Real-World Application: A tokenized debt fund automates quarterly coupon payments to hundreds of global investors, saving thousands of hours in back-office work annually.
• ROI Impact: Drives operational efficiency, reduces errors, and ensures timely, accurate distributions, improving stakeholder satisfaction.

Tokenization opens your debt portfolio to a global pool of digital asset investors and funds that were previously inaccessible due to structural barriers. This creates price discovery and demand from new investor classes.

• Market Expansion: Access crypto-native funds, family offices, and international investors seeking yield in a transparent format.
• Fee Generation: Originate and service tokenized debt, earning structuring and servicing fees from a broader market.
• Strategic Advantage: Position your firm as an innovator, capturing first-mover benefits in the institutional digital asset space.

Leverage atomic settlements via blockchain to eliminate principal risk in secondary trades. Payment and asset transfer occur simultaneously in the same transaction, removing the traditional T+2 settlement lag and counterparty default risk.

• The Traditional Risk: In OTC debt trades, a buyer could fail to pay after the security is delivered, or vice-versa.
• The Digital Solution: A trade is settled peer-to-peer in minutes, with ownership updating instantly on the shared ledger.
• Business Justification: Reduces capital reserves held against settlement risk and unlocks capital efficiency, a direct benefit to the CFO's balance sheet management.