Credix, with support from Clave, launched a “first-of-its-kind,” fully insured receivables pool. Inaugural investors include the Solana Foundation and Keyrock.
The receivables pool offers an investment opportunity “to accredited investors seeking up to a double-digit yield while insuring credit risk.”
More specifically, the pool, “which finances Colombian, underserved farmers, provides an attractive double-digit USD return and 45-day revolving liquidity windows, allowing investors to reap the benefits of a highly liquid and secure fixed-income option, supporting financial inclusion in Colombia.”
The underlying private credit is underwritten “by digital originator and servicer Clave and its affiliate Liquitech, a LatAm fintech committed to financial inclusion, that integrates proprietary software (including AI-informed credit scoring) via APIs to connect directly with frontline insurance company CESCE Colombia (Cesce).”
Cesce is a subsidiary of the Spanish Export Credit Agency (CESCE Group) — itself backed by the Spanish government — and “counts the likes of Munich Re as shareholders and partner re-insurers.”
Thomas Bohner, CEO of Credix, said:
“We are incredibly excited to unveil a fully-insured asset pool in collaboration with esteemed partners such as the Solana Foundation, Keyrock, and Clave. This groundbreaking initiative not only brings a unique offering to the market but also holds the power to make a significant social and economic impact by providing crucial financial support to farmers in Colombia.”
Clave and affiliates originate Colombian Pesos-denominated loans “in Colombia and pledge the receivables as collateral to the bond they issue via a bankruptcy remote master trust, allowing investors to benefit from the same sound financial structuring and safety predominant in the United States and Europe (but previously rare in Colombia) as well as providing much-needed credit to underserved communities in Colombia.”
The underlying private note, “typically registered with clearing agencies like the Depository Trust Corporation, or DTC, is acquired and settled through the Credix platform in USDC, a fully-reserved stablecoin.”
As the loans are repaid, Clave repays the investors “through the platform in USDC.”
Clave also hedges necessary currency exposures “to reduce forex risks associated with the fiat elements of the transaction.”
In 2023 alone, nearly 10 million USDC have “been originated by Clave through Credix they together target to increase this number by the end of the year.”
Due to the indicated demand for capital in Colombia, Clave and affiliates are “able to further scale origination by an additional 150M USDC over the coming months.”
This comes on the heels of “a recent $100M USD-denominated private note filed by Clave affiliates earlier this month to support factoring in Colombia, and Clave’s efforts relating to government payroll lending, known in Colombia as libranza.”
Pablo Pizzimbono, CEO of Clave, said:
“Getting investors from around the world to easily invest in our Colombian receivables market, is something that until recently was unthinkable. We’re excited to collaborate with Credix and its partners to access the benefits of the DeFi ecosystem. Our joint ambition is to expand and scale the partnership and onboard other investors over the coming months as we scale our operations together.”
Clave is a US-based credit solution provider “that focuses on digital origination and servicing, with operations in Latam, and primarily within Colombia.”
The non-bank lender focuses “on SMEs, from manufacturers to the agro sector. Clave is led by a seasoned team of alumni from JPMorgan, Goldman Sachs, and other leading finance firms with significant experience in credit, investing, and Latin America.”
Pizzimbono and Bohner together added:
“It’s quite remarkable what Clave and Credix are jointly accomplishing; we allow institutions from around the world to easily access the Colombian receivables market and support regional economic growth. This was unthinkable until now and is only made possible by tech collaborating with traditional financial structuring. We’re excited to scale the partnership.”
This new product represents “a significant step forward for the global crypto ecosystem and offers investors an attractive opportunity to participate in a highly profitable investment pool that is fully insured.”
Manuel Arevalo, President and CEO of CESCE Colombia, said:
“Cesce is committed to advancing economic opportunity and insurance innovation in Colombia. The ability to insure receivables underwritten by trusted partners and originators will expand the flow of investment capital into the region.”
Ben Sparango, head of strategic business development, Solana Foundation, said:
“Credix’ use of Solana to easily and transparently move value globally to places where it’s needed is an inclusive approach to DeFi on Solana that demonstrates the advantages of the Solana network. The Solana Foundation supports efforts to expand economic globalization and modernize the financial system.”
Kevin de Patoul, CEO of Keyrock, said:
“Keyrock is a long-term believer in the tokenization of real-world assets and the social impact it can have. As a global market maker, we continuously explore innovative advancements in the space. This collaboration serves as a compelling testament to the transformative potential of tokenization in emerging markets. With the credit insurance and liquidity provided, we firmly believe that this product aligns perfectly with our treasury strategy.”
Over the last few months, countries in Latin America have “been welcoming blockchain and crypto innovation through progressive regulation and the adoption of blockchain-based central bank digital currencies.”
Most notably, the Brazilian Central Bank is “set to launch Real Digital in 2024, aiming to further democratize access to financial products.”
Additionally, regulatory developments “related to mandatory receivables’ registration are positively impacting local credit markets and increasing trust in the system.”