DEFYCA, a digital securities platform based in Luxembourg, has announced that it will release its tokenized private credit protocol on the Avalanche blockchain's testnet later this month, with a planned launch on the mainnet in late July.
DEFYCA claims to be the first company to provide digital securities to professional investors under the European Union's forthcoming comprehensive crypto regulation called MiCA, as well as Luxembourg's current blockchain laws. This news comes as decentralized finance (DeFi) increasingly merges traditional capital markets with protocols offering tokenized versions of real-world assets, such as bonds and credit, on the blockchain for investors.
Private debt funds, which DEFYCA plans to bring to Avalanche, currently manage assets worth $1.6 trillion, according to a report by Broadridge. Boston Consulting Group and ADDX, Asia's private market exchange, have projected that the asset tokenization industry will become a $16.1 trillion business opportunity by 2030.