Fraktion, a platform specializing in real-world asset (RWA) tokenization and fractionalization, has secured €1.1 million in seed funding, as reported to Finbold on February 6.
Chief investors included Cabrit Capital, Tezos Foundation (XTZ), and Vox Capital, alongside industry veterans such as Olivier Huby (formerly of MFEX), Andréa Bensaïd (Eskimoz), and Guillaume Mayot (Lukeion).
The company will use the funds to further advance its technology and expand its footprint in the RWA sector.
Democratizing investment opportunities
Founded on the Tezos blockchain in 2023, Fraktion chose the Layer-1 (L1) network for its high performance and low transaction costs.
Its platform is designed to streamline the creation, management, and promotion of financial assets in industries such as real estate, precious stones, and finance, offering private market companies both an efficient and regulation-compliant framework.
Vincent Pastor, Chief Executive Officer (CEO) at Fraktion, sees the funding as a major step forward in democratizing more investment opportunities:
“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.”
Tokenization in real estate and other sectors
Among the early adopters of Fraktion’s platform is Kapi Club, a private real estate investment network that structures and manages club deals for high-value properties.
Relying on Fraktion’s white-label solution, Kapi Club offers a streamlined and compliant way to access real estate opportunities.
Lauren Dannay, CEO of Kapi Club, noted that Fraktion has enabled the company to move forward in structuring its investment projects. However, the latest funding round will help Fraktion’s strategic expansion in additional key areas.
For one, the company plans to promote its solution among private market firms and strengthen its presence in Europe and new strategic markets, including Asia.
In addition, Fraktion is focused on bridging traditional finance (TradFi) and decentralized finance (DeFi) with features such as collateralization, a secure secondary market, and compound interest tools.
Tokenization and B2B adoption
Investors contributing to the latest funding round see significant potential in Fraktion’s approach.
Omar Khalouti of Cabrit Capital, for example, emphasized the fact that tokenization is gaining traction through business-to-business (B2B) adoption, with companies like Fraktion leading the way.
Tezos Foundation Executive Director Jean-Frédéric Mognetti echoed Khalouti’s sentiment, noting also Fraktion’s potential to make early blockchain promises a reality.
With growing market and investor confidence, Fraktion is thus in a solid position to steer the future of how business structure and access RWAs.
