Following the successful launch of Frictionless Institutional Deposit Tokens on Avalanche before Christmas, the Frictionless team has launched ERC20 Swap contracts enabling the payment and settlement of investments in USDC, offering investors worldwide the chance to access premier tokenized funds natively in USDC.
ERC20 Swaps enable Managers to risk off any investment or settlement in USDC on the Avalanche C-Chain whilst ensuring tokenized funds can reach the broadest possible base of Investors.
Using the ERC20 Swap contracts, Frictionless Institutional Deposit Tokens can be converted to/from stablecoins using the Frictionless protocol to enable Managers to accept stablecoins while off-loading their associated risks, such as de-peg events, underlying community bank reliance, and liquidity risks.
The Frictionless ERC20 Swaps contracts:
✅ Support USDC/fsUSD Swaps - USDC can now be swapped to/from fsUSD (Frictionless US Dollars) which are 1:1 backed U.S Dollars held at G-SIB deposit accounts under Luxembourg securitization law.
✅ Execute Instantly - USDC Swaps are executed instantly, in single atomic transactions on Avalanche, ensuring Investors can pay and receive a settlement in USDC instantly.
✅ Enable Investors to invest using USDC into multi-currency funds - Investors can use USDC to invest in EURO, GBP, CHF, or any supported Frictionless multi-currency denominated fund.
✅ Unlock New Revenue Streams for Managers - Managers can unlock new fee-based revenue streams, automatically collecting fees that are currently captured by crypto exchanges and digital asset managers for converting U.S. Dollars to USDC.
Frictionless ERC20 Swaps enable USDC holders to invest in:
-Tokenized Private Equity Funds.
-Tokenized Private Credit and Infrastructure Funds.
-Tokenized Real Estate Funds, REITs, and Property Club Deals.
-Tokenized Commodities & Certificated Commodity Funds.
-Tokenized Art, Collectibles, Music Rights, IP Rights, Image Rights & their future cash flows.
-Tokenized Liquid Government Debt in the form of ETFs, Repos, and Treasuries.
-Tokenized Crypto Funds, Crypto ETFs.
-Tokenized Hedge Funds.
USDC Swaps on Avalanche C-Chain
On Dec 27th, the Frictionless Markets team conducted the first proven USDC to fsUSD swaps, automatically collecting fees to cover the on/off ramp costs of USDC.
In these swaps, you can observe the collection of optional fees and the atomic settlement of the swap of the fsUSD tokens with USDC into the PROTOCOL_TREASURY.
Frictionless ERC20 Swap - fsUSDC for USDC with automatic fee collection
Frictionless ERC20 Swap - fsUSDC for USDC with no fee collection
Checkout the live USDC Swaps on the Avalanche C-Chain: 👇
USDC -> fsUSD (Payment)
fsUSD -> USDC (Settlement)
Learn more about Frictionless ERC20 Swaps at 👇
The Frictionless markets team will make ERC20 Swaps available for USDT <-> fsUSD and USDC <-> fsUSD available across multiple chains in Q1 2024, enabling Investors to invest in tokenized funds from any EVM-compatible chain 🚀
Frictionless Institutional Deposit Tokens
The Frictionless protocol supports the payment and settlement of investments in eight global currencies, ensuring Investors globally have access to the best-tokenized funds in the currency of their choice.
Delivered on Citibank cash custodian and AlphaFX spot and forward services, our Institutional Deposit Tokens are a perfect solution for Managers and GPs seeking a highly optimized, transparent, and cost-effective solution for raising capital, managing cash-ops, cash waterfalls, and distributions within their funds.
Learn more about Frictionless Institutional Deposit Tokens 👇
Our protocol is built on the ERC-3643 specification for institutionally compliant tokenized securities and atomic settlement. The protocol audit was conducted by industry experts Hacken.io and scored 10/10, assuring our institutional partners and clients of our commitment to the highest security standards.
Follow us at Frictionless Markets for more updates.
Begin Your Tokenization Journey
Contact our Institutional Sales Team to learn how you can tokenize and automate all aspects your fund lifecycle, eliminate your cash drag, and legally distribute to LPs and Investors globally via our institutional partner network.