NASSAU, BAHAMAS / ACCESSWIRE / April 4, 2024 / Credbull, a decentralised finance (DeFi) platform offering high fixed yield structured products, announced that it has brought to market the first licenced on-chain private credit fund in this rapidly growing and high performing asset class.
The Credbull On-Chain Private Credit Fund 1 is not a tokenised fund, it is the realisation of a year-long effort to create a truly decentralised real world asset (RWA) investment vehicle. Investors will now have on-chain transparency of its strategy, risk management, asset allocation, real time performance and all off-chain deployment of capital and data through off-chain oracles. This novel structure is a direct response to the concerns around opaque asset classes, and aims to shine a light on these funds' actual management and performance.
"We are excited about the future of decentralised RWA and firmly believe that simply tokenising the subscription to a traditional fund or asset is not enough," said Jason Dehni, CEO and co-founder at Credbull. "We are guided by the core principles of DeFi, namely direct access, on-chain deployment, decentralised governance and full transparency."
Private credit, recognized as one of the best-performing asset classes over the last two decades in both absolute and risk-adjusted basis, offers investors diversification with high fixed yield solutions in an overall balanced portfolio amidst market volatility. With an asset allocation capacity exceeding $500 million, the Fund generates yield by allocating capital to established SME Lending Originators in emerging markets, enabling a diversified portfolio of over one million creditworthy SME transactions per year.
The Fund brings a whole new level of transparency previously unseen in funds across a wide spectrum of asset classes, including private credit. It brings significant innovations against offerings from incumbent players, and when coupled with a DeFi infrastructure and a 'Claim Token', the fund provides access to private credit, a historically exclusive asset class. It is but one of many asset classes that have been similarly kept in ivory towers, and is among many investment vehicles ripe for innovation.
"Private credit is a fast growing asset class due to its non-correlated high fixed yield solutions that complement any balanced portfolio," Dehni added. "And we believe it is an excellent demonstration of how the Fund can fundamentally change investment vehicles from being a black box to one that is more open, transparent, and understandable."
The added transparency of having the Fund on-chain also often leads to better outcomes; and doing so in a licenced, compliant manner removes the ambiguity and uncertainty many other on-chain (and off-chain) products currently face.
With its Credbull Pro DeFi-as-a-Service infrastructure, the Fund serves institutional platforms, project/DAO treasuries, asset managers and accredited investors. Institutional clients can seamlessly deploy Credbull Pro via API onto their native platforms, enhancing their service offerings and providing their clients with access to non-correlated high fixed yield opportunities.
"In addition to serving institutional clients, we're committed to also serving retail investors," adds Dehni. "Our roadmap includes the launch of a retail-friendly platform, further democratising access to this high performing asset class."
The Fund is deployed on Polygon PoS and registered in the Bahamas, and subject to the rules and regulations of the Securities Commission of the Bahamas. Participation is subject to the rules and regulations of various jurisdictions and certain regions may be excluded from access.
"In the realm of DeFi, Polygon PoS is positioned as a beacon of scalability, efficiency, and accessibility. It's the ideal ecosystem for projects like Credbull, offering a unique solution to revolutionise traditional finance and the RWA space through accessibility, transparency and decentralisation." Jack Melnick, Head of DeFi, Polygon Labs.
The Credbull On-Chain Private Credit Fund 1 has no minimum investment, rather than the six-figure or higher minimums seen with most private credit products, and comes with two different lock-ups: the first is a six-month term that pays a fixed 8% annual percentage yield (APY) with participation in up to 20% carry in the performance of the Fund; the second is a 12-month term that pays a robust 10% Fixed Yield with an additional 10% carry.
To learn more about Credbull, please visit www.credbull.io, and/or visit our Twitter/X page at https://twitter.com/credbullDeFi.
About Credbull On-Chain Private Credit Fund 1
Credbull introduces the first licensed on-chain private credit fund, marking a milestone in decentralised finance. With a commitment to transparency and innovation, the Credbull On-Chain Private Credit Fund 1 showcases the advantages of decentralised investment vehicles. Investors gain unparalleled insight into strategy, risk management, and performance, setting a new standard for the industry.
About Credbull
Credbull is at the forefront of merging traditional finance with decentralised technology. Founded by veterans from both realms, Credbull aims to usher in a new era of transparency, access, and accountability in investment. Through innovative solutions and a commitment to democratisation, Credbull is reshaping the landscape of finance for the digital age.
DISCLAIMER
Investing in the Credbull On-Chain Private Credit Fund 1 involves inherent risks, with past performance not indicative of future results. The Fund, registered in the Bahamas and subject to its regulatory framework, operates on-chain to provide transparency and accessibility to investors. However, prospective investors should be aware of the decentralised nature of the Fund, which entails unique risks associated with DeFi, such as smart contract vulnerabilities and regulatory uncertainties. With lock-up periods and minimum investment requirements in place, investors are encouraged to consult with financial advisors or legal counsel before participating, ensuring alignment with their investment objectives and risk tolerance.
Media Contact:
Ryan Gorman
PR lead, BABS Labs
ryan@babslabs.io
SOURCE: Credbull
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