The Frictionless protocol is an institutional-grade venue built on EVM-compatible smart contracts for the issuance, distribution and settlement of digital securities in the private markets. The process involves dematerializing credit & infrastructure funds, ETFs or AMCs into risk-profiled future cash flow tokens, in the form of ERC-3643 digital securities which are aligned with the distribution schedule of the Manager.
Via strategies, Investors can invest in a diversified cross-section of funds using instant atomic settlement in attested 1:1 backed FIAT deposit tokens, which are banked with a G-SIB in Luxembourg.
This tokenization lego-brick approach ensures digital securities can be instantly composed into secondary trades, semi-liquid & automatic structured products and distributed between Investors in a privacy-protected mode for a few cents. All tokens within the protocol are permissioned tokens built under ERC-3643 specification for permissioned tokens to ensure that there is instant delivery versus payment, whilst ensuring the privacy of the Investor is protected. The Frictionless Markets APIs interact with these smart contracts to orchestrate the mint, transfer and burn of the various tokens in the protocol.