Small and mid-sized enterprises generate enormous amounts of real-world cash flow, yet they are mostly invisible to crypto capital markets. Defactor is trying to change that by letting businesses tokenise verified assets, invoices and revenue streams, then borrow against them on-chain.
Collateral discipline, not token hype
The platform's documentation and pool structures place heavy emphasis on asset verification, legal documentation and servicing rights. That is exactly the opposite of the yield-first, collateral-second approach that blew up in 2022, and it is why Defactor's pipeline looks more like trade finance than DeFi speculation.
The businesses that will benefit most from tokenisation are the ones least served by incumbent banks.
Why FACTR is worth watching
SME financing is a vast, underserved market. If Defactor can maintain underwriting standards while scaling originator onboarding, it could become a meaningful bridge between real business cash flows and on-chain liquidity. CryptoxInsights rates the collateral framework here as unusually serious for a project of this size.