Fraktion, a pioneering fintech company providing a complete solution for the tokenization and fractionalization of real-world assets (RWAs), has announced the successful completion of a €1.1 million seed funding round.
The investment was secured from a group of strategic investors, including Cabrit Capital, Tezos Foundation, Vox Capital, and prominent business angels such as Olivier Huby (ex-MFEX), Andréa Bensaïd (Eskimoz), and Guillaume Mayot (Lukeion).
Democratizing investment through tokenization
Launched on the Tezos blockchain in mid-2023, Fraktion chose the Layer-1 network for its superior performance and low transaction costs.
The newly acquired funding will enable Fraktion to accelerate the development of its innovative technological platform and expand its impact across the real-world asset sector.
Whether dealing with real estate ventures, precious stones, or sophisticated financial products, Fraktion empowers private markets companies to efficiently create, manage, and commercialize financial assets, all while ensuring strict regulatory compliance and ease of use.
“We are thrilled to take this next step with the support of our investors. Fraktion is positioning itself as a key player in democratizing access to previously inaccessible investment opportunities and enabling our clients to efficiently structure their offerings”, said Vincent Pastor, CEO of Fraktion.
Real estate use cases lead the way
One of the first platforms to leverage Fraktion’s technology is Kapi Club, a private real estate investor network that utilizes Fraktion to structure and manage club deals for high-value real estate projects.
“Fraktion has enabled us to take a significant step forward in structuring our investment projects. Their platform provides a modern and efficient solution to meet the growing expectations of investors for simplicity, transparency, and performance”, explained Lauren Dannay, CEO of Kapi Club.
Fraktion’s white-label solution allows businesses to deploy secure, regulation-compliant investment platforms, complete with KYC/AML integration, in a matter of days.
This allows partners to quickly launch offerings under their own brand, streamlining the investment process.
Funding fuels expansion and Innovation
“We firmly believe that tokenization will see widespread adoption through B2B channels, with companies like Fraktion empowering businesses to seamlessly structure tokenized offerings. We are excited to support this highly methodical and forward-thinking team as they lead the charge in driving this transformation,” said Omar Khalouti from Cabrit Capital.
The funding will be strategically allocated to:
- Scaling commercial deployment: Accelerating the adoption of Fraktion’s solution among private markets companies seeking efficient tools to manage their investment projects.
- International expansion: Strengthening Fraktion’s presence in key markets, with a particular focus on Europe and strategic regions in Asia.
- Developing innovative products: Launching advanced features such as collateralization, a secure secondary market, and compound interest tools to bridge the gap between Traditional Finance (TradFi) and Decentralized Finance (DeFi).
Tezos foundation backs Fraktion’s vision
Commenting on the news, Jean-Frédéric Mognetti, Executive Director of the Tezos Foundation, stated:
By providing a platform to securely tokenize and manage investments while maintaining regulatory compliance, Fraktion is delivering on one of the early promises of blockchain technology and democratizing investment in physical assets. Fraktion is a great example of what’s possible on Tezos and we are delighted to provide our continued support to the team as they realize their vision.
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