DEFYCA Introduces Blockchain-Based Digital Securities Protoc...| MENAFN.COM

Friday, 24 March 2023 07:26 GMT

DEFYCA Introduces Blockchain-Based Digital Securities Protocol To Shield Investments From Market Volatility

(MENAFN- EIN Presswire)


The protocol will be providing a bridge between traditional and decentralized finance while offering increased transparency, security and liquidity.

LUXEMBOURG, March 17, 2023 / / -- DEFYCA is excited to introduce its new protocol that allows investors to protect their investments from market fluctuations. The company's digital securities platform is compliant with the securitisation and blockchain laws of luxembourg , providing a link between traditional and decentralized finance.

DEFYCA's protocol takes private credit , private infrastructure debt and loan securities and converts them into digital bonds that are then represented as Cash Equivalent Tokens (CETs). These tokens also represent the legal rights to the underlying assets' future cash flows and are fully considered a digital security under the EU Securities Prospectus Regulation, passing the blockchain test. However, the key difference is that they are not subject to the same market fluctuations as most other digital assets, being effectively on-chain representations of real-world debt portfolios.

The DEFYCA protocol also uses APIs to support compostable structuring, giving traders full autonomy to cash-out early, trade their positions to others, or rebalance risk through select portions of their future CETs. The company's hybrid protocol effectively has a foot in both the traditional and decentralized finance markets, giving users the flexibility to invest using stablecoins or standard FIAT.

In addition, digital securities provide increased transparency and security. Because security digital securities are built on blockchain technology, all transactions are recorded on a secure and transparent ledger, reducing the risk of fraud and errors. DEFYCA has worked closely with laws of Luxembourg to ensure compliance and provide a clear framework for their business.

'Another hurdle for digital securities is the lack of infrastructure and liquidity,' said Pat Hourigan of DEFYCA. 'Many investors are hesitant to enter the market due to the lack of liquidity, as they may not be able to easily sell their positions.' The company is working to address this issue by building out the necessary infrastructure and partnerships to increase liquidity in the market.

DEFYCA's launch comes at a time when investors are increasingly turning to alternative asset classes that offer regulation, stability, and safety. With its unique offering, DEFYCA is well-positioned to provide investors with a way to safely hedge their bets against the unpredictability of the current industry conditions, while earning strong, stable, and financially regulated yields – all while providing democratized access to a market that was previously reserved for a select few.

DEFYCA's testnet is set to launch on Avalanche towards the end of March, with the network giving full support. The company is backed by industry heavyweights Avalanche, and its innovative protocol has already positioned itself as the de facto market leader in this rapidly growing sector.

For more information about DEFYCA and its unique protocol, visit their website

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