Fraktion Raises €1.1M to Tokenize Real-World Assets, Targeting Real Estate, Precious Stones, and Financial Products

Fraktion, a platform focused on the tokenization and fractionalization of real-world assets (RWAs), has raised €1.1 million in a seed round.

Fraktion, a platform focused on the tokenization and fractionalization of real-world assets (RWAs), has announced a €1.1 million seed round led by Cabrit Capital. Joining the round are the Tezos Foundation, Vox Capital, and several business angels. The capital will be used to expand Fraktion’s end-to-end software solution, which helps businesses create, manage, and market tokenized investment products in a way that meets regulatory requirements.

Fraktion launched on Tezos in mid-2023, choosing the network for its performance and low transaction fees. The new capital will support Fraktion’s efforts to expedite platform development and extend its services across different asset categories, including real estate, precious stones, and financial products. According to Fraktion’s leadership, the company intends to lower barriers for private market firms that want to offer tokenized assets while remaining fully compliant with regulations in various jurisdictions.

“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”, said Vincent Pastor, CEO of Fraktion.

Combining Software Tools and Compliance

On its website, Fraktion describes itself as an end-to-end SaaS platform that supports rapid deployment of tokenization solutions. Its services include tools for Know Your Customer (KYC) and Anti-Money Laundering (AML) integration, investor onboarding, token issuance, and ongoing asset management. By offering these features, Fraktion aims to give B2B clients a streamlined process for bringing traditional assets onto the blockchain under their own brand names.

One of the earliest use cases is Kapi Club, a private real estate investor network that has used Fraktion’s tools to structure and manage high-value real estate projects. Kapi Club’s team relies on Fraktion’s infrastructure to launch a white-label platform, simplifying the process of raising capital and offering fractional ownership to its investors.

“Fraktion has enabled us to take a significant step forward in structuring our investment projects. Their platform provides a modern and efficient solution to meet the growing expectations of investors for simplicity, transparency, and performance”, explains Lauren Dannay, CEO of Kapi Club.

Support from Strategic Investors

Cabrit Capital led the seed round together with other strategic partners. Cabrit Capital invests in early-stage businesses that aim to bring blockchain technology into mainstream use. Its leadership has stated that tokenizing real-world assets can create new avenues for investors who want to diversify portfolios beyond traditional public markets.

“We firmly believe that tokenization will see widespread adoption through B2B channels, with companies like Fraktion empowering businesses to seamlessly structure tokenized offerings. We are excited to support this highly methodical and forward-thinking team as they lead the charge in driving this transformation”, said Omar Khalouti from Cabrit Capital.

Fraktion’s approach is also backed by the Tezos Foundation. The organization focuses on advancing innovative applications built on Tezos, an established Layer-1 blockchain. Fraktion’s decision to build on Tezos aligns with the foundation’s interest in enabling efficient, secure smart contracts and expanding the use of blockchain in various financial sectors.

“By providing a platform to securely tokenize and manage investments while maintaining regulatory compliance, Fraktion is delivering on one of the early promises of blockchain technology and democratizing investment in physical assets. Fraktion is a great example of what’s possible on Tezos and we are delighted to provide our continued support to the team as they realise their vision”, said Jean-Frédéric Mognetti, Executive Director of the Tezos Foundation.

Future Plans and Product Roadmap

Fraktion intends to use the newly secured funding to enhance its commercial reach and develop new offerings for businesses that want to operate in multiple regions. Although the company is based in Paris, it plans to concentrate on Europe and other key areas in Asia where demand for tokenized assets may grow in the near term.

Another part of the company’s roadmap involves bridging traditional finance (TradFi) and decentralized finance (DeFi). Fraktion aims to launch features such as collateralization tools, secondary markets for tokenized assets, and systems to compound returns. The team believes these additions will make it simpler for both institutional and individual investors to manage digital assets in a compliant manner.

By focusing on software efficiencies and compliance features, Fraktion hopes to address some of the challenges businesses face when digitizing private investments. The company views fractional ownership as an emerging opportunity for broadening participation in markets that have been historically limited to institutional players. In addition, Fraktion’s team has backgrounds in finance, real estate, marketing, and development. This mix of expertise drives their approach to building a user-friendly platform for B2B tokenization.

Continued Growth in Tokenized Assets

Market observers suggest that the tokenization of real-world assets is growing as more businesses seek to raise capital from a broader base of investors. Fraktion’s