In the last few years Software as a Service (SaaS) businesses have had the option of skipping venture capital and instead borrowing against recurring revenues. Now Swiss digital asset bank Sygnum is helping one of the European SaaS lenders, float, to tokenize part of its portfolio using Sygnum’s Desygnate tokenization offering.
The UK hedge fund Fasanara Capital (AUM $4 billion) is the senior lender. In other words, the tokens are the junior, higher risk, higher return tranche. The token has an 18 month maturity, pays 14% per annum and uses Switzerland’s DLT laws.
So what are the benefits of tokenization in this case? Usually an investment like this would be relatively illiquid, but Sygnum provides a secondary market, SygnEx. The biggest advantage is likely the smaller ticket size, which broadens the investor base, although Sygnum doesn’t target average retail investors. Both the fractionalization and secondary market enhance liquidity.
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