Today we are pleased to introduce a first-of-its-kind investment opportunity. FACTOR-805 is the first real-world asset that can be tokenized and have distributions paid in Dai or fiat.

FACTOR-805 is groundbreaking because we are integrating Dai, the decentralized stablecoin from MakerDAO, into various parts of the security token process: we will accept Dai from investors, and will give investors the option to receive interest payments in Dai. The structure is the first tokenized, credit tranched debt security to incorporate stablecoins into purchase and payment processes.

Dai, as a stablecoin, has the potential to remove banks as transfer intermediaries by enabling investors to be paid seamlessly through the Ethereum network. We believe this kind of automated interest payment will help streamline the back end of these transactions, which are typically slow and costly.

The Factora team is excited to catalyze this first intersection of stablecoins and tokenized securities in this inaugural deal with MakerDAO. As a stablecoin, Dai is not intended to be subject to the volatility of cryptocurrencies (see chart: Normalized Dai/USD and Dai/ETH Prices).

“FACTOR-805 is a breakthrough. It’s a powerful example of how to unlock more value from investments by bringing real world assets to the blockchain,” said Rune Christensen, CEO and co-founder of MakerDAO. “With Dai, investors get the speed, security and efficiency of a cryptocurrency without the volatility that typically defines the space.”

WHY DAI

Stablecoins bridge existing financial and crypto markets by utilizing the same reference pricing, empowering users to remain in the digital sphere while allowing real-world assets to come online. They carry some key benefits of fiat currencies, including the stability of the asset or currency to which it is linked — such as the US Dollar. Key benefits of cryptocurrencies also apply: fast and trustless settlement, frictionless transfer, and use of blockchain technology.

We believe in the Dai stablecoin and are pleased to incorporate it specifically into FACTOR-805. MakerDAO is noteworthy in the space for presenting a creative solution to the conundrum of volatility in stablecoins backed by other cryptocurrencies (read more here).

ABOUT FACTOR-805