Real Talk Case Study: Frac – Democratizing Investments through Blockchain-Driven Tokenization
An Interview with Frac
In a world where access to high-value assets has traditionally been reserved for the wealthy, Frac is transforming the investment landscape by enabling enterprises to tokenize luxury assets, NGO projects, and intellectual property. Founded in August 2022 by Japhet Lim and Melvin Tan, Frac is based in Singapore with an expansion base in Malaysia. This innovative platform offers fractional ownership of valuable assets, making investments accessible to a broader audience and promoting financial inclusivity.
Can you describe Frac in a few sentences?
Frac is a B2B tokenization platform designed for enterprises operating in the luxury assets, NGO, and intellectual property sectors. The platform enables these enterprises to tokenize their assets and offer fractional ownership to their audience, democratizing access to high-value assets that were previously inaccessible to middle and lower-income individuals. Frac generates revenue through profit-sharing on both primary and secondary transactions and one-time deployment fees for tokenization services.
What is the primary mission or goal of your project?
The primary mission of Frac is to harness blockchain technology to create a fairer and more sustainable financial system by enabling the tokenization and fractionalization of high-value assets. Starting with Southeast Asia, our goal is to provide better capital flow and investment opportunities for a wider population. We aim to build the infrastructure that allows enterprises to tokenize assets in sectors like luxury goods, NGO campaigns, and intellectual property.
What are the key social or environmental impacts of your project?
Social Impact:
- Democratization of Investments:
Frac enables fractional ownership of high-value assets like real estate, luxury items, and intellectual property. By lowering the financial barriers to entry, it provides middle- and lower-income individuals access to investment opportunities traditionally reserved for the wealthy. - Support for NGOs:
By tokenizing NGO projects, Frac offers a novel fundraising tool for social and humanitarian causes, increasing visibility and attracting a global investor audience. This leads to enhanced funding for charitable projects. - Financial Inclusion:
Frac allows transactions for tokenized assets via credit/debit cards, enabling people without prior cryptocurrency knowledge or digital wallets to invest in digital assets, further broadening access.
Environmental Impact:
- Sustainable Investments:
Frac focuses on tokenizing assets related to green technologies and sustainable practices, directing capital toward projects that contribute to environmental sustainability. - Reduction in Paper Use:
By digitizing asset transactions and record-keeping, Frac reduces the need for paper-based documentation, lowering waste and decreasing the carbon footprint of traditional asset management. - Energy Efficiency:
Frac prioritizes energy-efficient blockchain frameworks, advocating for the use of proof-of-stake over energy-intensive proof-of-work models, reducing the environmental impact of blockchain technology.
How do you measure the impact of your project?
Social and Financial Impact Metrics:
- Investor Demographics and Accessibility:
Frac gathers data on the socio-economic backgrounds of its investors to assess whether its platform is democratizing access to high-value assets for underserved communities. - Surveys and User Feedback:
Regular surveys are conducted to understand how tokenization has impacted users’ financial behaviors and health. - Transaction Volume:
Frac tracks the number of tokenized assets and the volume of transactions, particularly focusing on assets that were previously inaccessible to average investors. - NGO Funding Comparison:
The platform measures the funds raised for NGO projects through tokenization versus traditional fundraising methods to quantify its impact on social causes.
Environmental Impact Metrics:
- Reduction in Resource Use:
By tracking the reduction in paper and physical resources used due to digital asset transactions, Frac quantifies its environmental benefits. - Sustainable Investment Tracking:
Frac monitors the amount of capital directed toward green technologies and sustainable projects via its platform to ensure alignment with environmental goals. - Energy Consumption:
The energy efficiency of the blockchain technologies used is assessed regularly to minimize the carbon footprint of mining and transaction processes.
Can you share a story about how Frac has positively impacted someone’s life or a community?
Frac recently partnered with a local art gallery to tokenize several pieces of artwork, making them accessible to a wider audience. The gallery saw a 50% increase in the number of community members investing in art compared to traditional sales. Additionally, the tokenized artworks appreciated by 20% in value within a year, providing significant returns to the investors. This initiative not only democratized access to the art market but also demonstrated the potential of tokenization to create meaningful financial returns for a broader demographic.
What cool tech does Frac use to power its magic?
Frac has developed several key technologies that set it apart in the tokenization space:
- Fractional Ownership Technology:
Our platform allows assets like real estate, luxury goods, and intellectual property to be split into multiple fractional shares, enabling co-ownership by multiple investors. This approach increases accessibility and liquidity for high-value assets. - Asset Owner’s Portal:
We offer an intuitive portal for asset owners to create fractions of their assets, control the number of shares issued, and set minimum thresholds for sale. - Decentralized Exchange (DEX):
Frac’s DEX supports secure trading of fractional assets, without the need for central authorities or intermediaries, reducing the risk of mismanagement or fraud. The DEX is decentralized, ensuring transparency and security for all transactions. - Credit/Debit Card Integration:
We are the first tokenization platform to allow enterprises to accept credit and debit card payments for Real World Asset (RWA) tokens, expanding accessibility to a non-crypto audience.
What are the standout features or awesome innovations that make Frac unique?
Frac's standout features include:
- Decentralized Exchange (DEX) Module:
Frac’s DEX allows enterprises to trade fractionalized assets without the need for custodian fees, brokerage, or treasury licenses, simplifying the process for businesses. - Credit/Debit Card Payments:
Frac is the first tokenization enabler to support credit and debit card payments for tokenized Real World Assets, making blockchain-based investments more accessible to those unfamiliar with cryptocurrencies.
What have been the biggest twists and turns in Frac’s journey so far, and what exciting opportunities and launches can we expect in the next year?
Frac has faced several key challenges:
- Regulatory Compliance:
Adapting to evolving tokenization and crypto regulations required quick adjustments, causing temporary service changes. - Technological Shifts:
Transitioning to efficient blockchain protocols like proof-of-stake improved speed and cost but required significant updates. - Market Expansion:
Expanding from luxury assets to NGOs and intellectual property broadened Frac’s reach but introduced new complexities. - Crypto Volatility:
Market fluctuations impacted funding and asset stability, pushing Frac to develop innovative financial models and hedging strategies. - Partnerships:
Aligning with strategic partners involved complex negotiations, leading to delays and strategy shifts. - Cultural Acceptance:
Changing mindsets around tokenization required heavy investment in education and community engagement to build trust.
Looking ahead, Frac plans to:
- Expand Utility for $FRAC:
Frac aims to back its token with a basket of high-performing tokenized assets, gradually building a reserve to stabilize $FRAC’s value and make it a global digital reserve currency. - Develop New Platforms:
Frac is working on a Real World Asset Pricing Data Aggregator to track tokenized asset performance and a DeFi RWA Collateralization Platform to enable high-performing RWA tokenized assets to be used as collateral for loans.
Why did you choose to join Blockchain for Good Alliance?
Frac chose to join the Blockchain for Good Alliance to align with a community dedicated to harnessing blockchain technology for social and environmental impact. By partnering with this alliance, Frac connects with a network of organizations and companies united in their mission to leverage blockchain innovations to tackle pressing global issues, including economic inequality, market accessibility, and sustainability.
What advice would you give to someone looking to start their own blockchain project for social good?
Understand the Problem:
Fully grasp the social issue you're addressing to ensure your solution meets real needs and has genuine impact.
Choose the Right Technology:
Select a blockchain that balances scalability, security, and environmental impact, and is accessible to non-technical users.
Engage the Community:
Involve your target community from the start. Their insights can help shape a more effective and sustainable project.
Leverage Partnerships:
Collaborate with organizations to gain resources, broaden your network, and enhance credibility.
Focus on Trust and Transparency:
Prioritize transparency in all operations to build trust with stakeholders and the wider community.
Ensure Regulatory Compliance:
Stay informed on regulations and seek legal advice to navigate the evolving landscape safely.
How can others get involved or support your mission?
If you know of any enterprise owners in the luxury assets, NGO, or intellectual property sectors, we would love to connect! Reach out to us at hello@frac.io or DM us on Telegram at https://t.me/teefssss.
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