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Risk Disclosure
Who Fixed-Term Digital Credit Note Tokens Are Geared Towards?
Fixed-Term Digital Credit Note (FDCN) tokens are designed for forward-looking companies and debt capital allocators who seek efficient, flexible, and blockchain-enhanced access to debt capital. These instruments are ideally suited for viable businesses and investment entities that are either already generating strong cash flow or have high-confidence revenue projections in the near term. By merging the structure of traditional credit instruments with the programmability and transparency of decentralized finance (DeFi), FDCNs provide a powerful solution for modern financing needs without the rigid constraints of conventional debt markets.
FDCNs are particularly geared toward the following groups:
Cash Flow Positive Businesses
Established companies with predictable earnings can leverage FDCNs as an alternative to securing traditional debt and attracting private credit options. This unlocks working capital or funding expansion plans without diluting equity. The fixed-term nature and yield-bearing structure of FDCNs allow for flexibility in managing debt capital and maturity dates, while minimizing refinancing risk.
Growth-Stage Companies with Imminent Revenue
Businesses with clear product-market fit and robust revenue forecasts over the next 12 months can issue FDCNs backed by a smart contract locked Digital Asset Treasury consisting of digital assets and/or tokenized real world assets. This structure helps unlock debt capital in advance of growth, enabling speed to market, product expansion or team scaling.
Companies Pursuing Strategic Acquisitions or LBOs
FDCNs are well-suited for financing strategic acquisitions, especially in leveraged buyout (LBO) scenarios. Whether acquiring a competitor, expanding into a new vertical, or rolling up multiple assets under one corporate umbrella, businesses can issue FDCNs to fund the deal, backed by a Digital Asset Treasury with automatic hourly yield distribution to FDCN holders via Yield Tokens.
Real Estate Companies and Asset Aggregators
Real estate firms targeting revenue-generating commercial, industrial, or mixed-use properties can use FDCNs to raise acquisition debt capital without relying on traditional lending institutions. With income from leased properties covering the yield for a FDCN, issuers can attract institutional and DeFi-native debt capital or private credit lenders, funds or managers.
Private Venture and Investment Funds
Venture capital and private equity funds can raise debt capital through private credit markets through FDCNs to complement their equity financing strategies. This allows funds to preserve upside in their portfolio companies while gaining access to flexible leverage. Funds can collateralize the FDCN with a Digital Asset Treasury where the principal and yield can be further backed by management fees, or limited partner commitments.
Specialized Vehicles and Infrastructure Projects
Project-based companies or infrastructure developments that offer long-term, revenue-generating potential, such as energy, transportation, or other infrastructure, can issue FDCNs to front-load debt financing while offering stable yield to private credit lenders, funds or managers.
FDCNs offer these entities an alternative to rigid bank loans, restrictive bond covenants, and expensive equity dilution. With programmable hourly yield disbursement, fixed-term structure and backed by a smart contract locked Digital Asset, they create a modernized financing pathway that merges the predictability of TradFi with the efficiency and borderless access of DeFi. Breeds confidence with private credit lenders, funds or managers and allows for companies to grow.
Who can issue a FDCN?
Only approved institutions can issue a FDCN, if a FDCN is issued for a direct acquisition by the approved institution then the company to be acquired is vetted by the issuer.
If the FDCN is being issued on behalf of another entity then a vetting process is required of the entity and the lending group.
Key Characteristics of FDCN Tokens
Asset-Backed
FDCNs are collateralized by a smart contract locked Digital Asset Treasury, ensuring intrinsic value and risk mitigation.
Perpetual Structure
Similar to traditional debt, FDCNs have a fixed-term maturity date or tranches of maturity dates.
Programmable Yield
Smart contracts automate hourly yield distribution to holders in the form of Yield Tokens.
Convertible Flexibility
FDCNs can be structured to convert into equity under predefined conditions, supporting growth strategies.
Exchange-Ready Liquidity
FDCNs are designed for listing and trading on decentralized and centralized exchanges, enhancing market access.
Regulatory Simplicity
FDCNs can be structured to avoid classification as securities, streamlining compliance and distribution.
