Vision
To create a world where wealth can flow better for selected asset classes, one asset fraction at a time, starting with Southeast Asia.
Mission
To harness the power of blockchain to tokenize the world to create a fairer and more sustainable financial system. Frac wants to be the builder of infrastructure and products that enables the tokenization and fractionalization of all high-value assets, beginning with Luxury Assets, NGO (Non-Governmental Organisation) Campaigns and Intellectual Property.
Current Product
Frac has built a technology solution that allows an asset to have fractional ownership i.e. asset ownership can be ‘split’ into multiple parts and therefore co-owned by multiple owners at the same time (as opposed to the asset being owned individually or by a small group). Think real-world assets like precious stones, precious metals, a valuable antique, NGO campaigns, or even patents or trademarks in a private business, the list of assets that can be fractionalised is very long.
Frac helps Enterprises to deploy their own brand of:
1/Asset Owners' Portal
this Asset Owners' Portal allows asset owners to easily create and sell fractions of different assets to enterprises. The asset owner has full control of how many fractions they create and set some minimum thresholds of how many they want to sell. We have also built an Asset Initial Offer platform, where investors can easily buy fractions of different assets.
2/Initial Asset Offering Portal
this Initial Asset Offering Portal allows assets to be listed for a pre-market offer. This means that the fractions are sold at a fixed price to a potentially whitelisted group of buyers.
3/Decentralised Exchange
the decentralised exchange is where the enterprise's investors can perform peer-to-peer buying/selling of asset fractions. The major difference is that this exchange solution is decentralised i.e. no central authority holds people’s money or takes custody of the fractions. Investors own and manage their own wallets. This removes the chance of any central authority becoming a bad actor or misusing investor funds/assets.
Business Model
Frac itself does not operate any of the above technologies under the Frac brand.
In other words, the Frac ecosystem acts as a Layer 1.5 WIFI (Web3.0 Infrastructure Framework Integrator) The relationship between Frac and its Enterprise Partners is primarily that of a service provider offering Software-as-a-Service (SaaS) solutions - this includes the Asset Owners' Portal, Initial Asset Offering Portal and the Decentralised Exchange. Frac provides the technology infrastructure, allowing enterprises to deploy their own branded tokenization platforms using Frac’s SaaS model. The Enterprise Partners use these platforms to tokenize their assets and manage transactions, while Frac remains in the background ensuring seamless operation.
The ownership of the fractionalization platform is tied to the identifiable subscriber, which is the Enterprise Partner that subscribes to Frac’s software. The Enterprise Partner, as the subscriber, owns the operational control of the platform, allowing them to manage and tokenize assets under their brand. While Frac provides the underlying technology and infrastructure, the Enterprise Partner is the one that exercises ownership over the day-to-day operations and interactions with end-users on the platform. This white-label approach ensures that the platform is fully integrated with the Enterprise Partner’s brand and operations.
Sample Product Screenshots:
Decentralized Exchange - fractions of different kinds of assets can be traded here
Please take note: Frac is not operating this Decentralized Exchange,
Frac sells this software-as-a-service to compliant parties.
Different asset types can be listed and traded
Smooth User experience when buying or selling fractions
Easy-to-use interface for asset owners to adjust the corresponding fractionalization settings
No Web3.0 barrier, use emails and socials to create accounts
Video Demonstration of the Product
An example of how fractionalizing an asset might work, using the Frac demonstration platform
Market Segment
Frac has a primary focus on Luxury Assets (eg. gold bullion, pink natural diamonds or burmese jade) with a secondary focus on deals involving tokenisation of NGO (Non-Governmental Organization)/charity-led causes (for e.g., tokenisation of donation campaigns). A third segment which Frac is looking into, is tokenisation of Intellectual Property. (eg. patents, trademarks and etc.)
Revenue Stream
Frac makes money in three ways:
1. Frac takes a cut of the gross transacted value at the primary offering stage (similar to the subscription volume during pre-IPO)
2. Frac takes a cut of the gross transacted value at the secondary trading stage (similar to the trading volume after IPO)
3. Frac takes a one-time deployment fee when Frac deploys the Asset Owners' Portal, Initial Asset Offering Portal and the Decentralised Exchange for Enterprise Partners
The projections below are forward-looking and based on the respective asset market sizing as of End 2022 . Reader discretion is advised. Exact figures can be found in the graphic below
The TAM (Total Addressable Market), SAM (Serviceable Available Market) and SOM (Serviceable Obtainable Market) in terms of Frac's potential revenue. Intellectual Property market sizing is covered separately in Section 5.
Key Successes
Frac is excited to announce that it has been granted Malaysia Digital (MD) Status by the Malaysia Digital Economy Corporation, a recognition under the national strategic initiative, Malaysia Digital. Frac is awarded the MD Status, in regards to the provision of on-chain asset fractionalisation services
MOU signed with TRAXX IT Services, to be upgraded into a full Joint Venture, to look into tokenization of remittances and payments.
Sole Winner of MasChain's Inaugural Developer Grant
MOU signed with GamBit Custody, Malaysia, licensed Digital Asset Custodian
Incubated by Blockchain for Good Alliance, an initiative launched by ByBit
Accepted into Tenity x XDC Network's Inaugural Accelerator Program, with funding offer
Frac is at an early stage of commercialization, with eight closed and signed deals, one with a whiskey wholesaler, four with gemstone companies, one with an engineering institute, and two with general asset management firms.
One of the eight closed deals are companies managed by SGX-listed companies, namely RegalRare. managed by FJ Benjamin.
Frac has signed a contract with iGold, a gold bar supplier, to tokenize gold for investment and jewellery crafting purposes
Frac has signed a contract with Planet Spirits, a whisky wholesaler subsidiary of Whisky Store which owns Quaich Bar, distributing over 500 different brands of whisky.
Over 400M USD worth of pre-tokenized assets across 7 Enterprise Partners
Diamond Laboratories, Frac's customer, organized a successful Initial Gemstone Offering, all 10 fractions were purchased in 3 days (diamondlabs.io/igo)
Feel free to contact us at hello@frac.io for further inquiries on awards and traction.
Overview of the Business Plan for 2024
In the year 2024, it is all about focus.
Frac aims to thrive in niche areas. While there are many B2C projects focusing on tokenization of multiple capital market products and real estate, there are very few B2B projects. In other words, a big chunk of competitors are focusing on creating a successful marketplace whereas Frac aims to empower existing marketplaces. Frac is a B2B Tokenization Enabler, specifically for Luxury Assets, NGO Campaigns and Intellectual Property. Frac aims to go to existing enterprise brands in the above mentioned sectors and enable them to offer tokenized versions of their products.
If we zoom in and look at tokenization enablers specifically in the area of Luxury Assets, NGO Campaigns or Intellectual Property, no competitors are doing the exact same thing as Frac.
Frac believes that for RWA (Real World Asset) Tokenization to thrive, the question of demand must be answered. It is not just about putting things on-chain, it is also very much, about selling those things.
Niche Markets are where Frac and $FRAC, will thrive.
Entity Ecosystem
Frac Pte. Ltd.
This entity holds the IP (Intellectual Property) of all software that is developed. It is chosen to serve this purpose because Singapore is advanced in IP protection laws.
This will allow the Frac Team to better protect all investors and stakeholders of the Frac ecosystem.
This is also the entity that will act as the signatory for all customer contracts.
Frac Pte. Ltd. has obtained all necessary registration documents to conduct it's business operations in Singapore.
Frac Sdn. Bhd. (100% owned subsidiary of Frac Pte. Ltd.)
This entity serves as:
Key Entity that marks Frac’s foray into the Malaysian tokenization market. This is because the Frac Team sees immense potential in the Malaysian market in terms of blockchain and technology. Asset Tokenization, as an activity, needs to be compliant with local law and regulations, therefore forming a Malaysian entity is necessary.
Manpower Hub of the Frac ecosystem and is expected to hire many talents for 2 specific areas of the business:
- Tech/System Operations (helping clients with programming of specific software for their business needs)
- Business Developers specifically targeted at engaging clients within Malaysia for asset tokenization, subjected to adherence to local laws and regulations.
Key Entity that has developed technologies relating to tokenization of supply-chain financing processes, token staking technology which would be called into use for Frac Pte Ltd's enterprise customers
