OVERVIEW
Summary, Mission, Features, Products
Last updated
Summary, Mission, Features, Products
Last updated
Chateau is a DeFi platform that brings institutional-grade RWAs on chain for international investors.
Chateau Equity.Ξ and Debt.D tokens are fully collateralized on-chain representations of stakes in off-chain asset vehicles. Investors are protected with full legal recourse, and the protocol is asset-class agnostic with listings for private equities, debt, close-ended funds, commodities, and derivatives.
Fundamentally, Chateau aims to integrate traditional financial instruments on chain in a composable manner by enabling primary RWA token issuance and extending the aforementioned token's functionality through an ecosystem of composable DeFi RWA apps.
Chateau assets are composable with most DeFi protocols, enabling novel applications such as on-chain RWA-based lending markets, leverage, rehypothecation, and other use cases.
Chateau is building the Internet Financial System to make Decentralized Finance (DeFi) accessible to firms and investors globally.
Equity and debt financing are crucial to business success in all advanced economies. However, traditional capital markets are opaque and cost-prohibitive to most except large enterprises. Complex fundraising rules, layers of middlemen, and the siloed nature of private investments add to the difficulty in accessing deal flow and impede capital formation.
Chateau mission is to solve the two-sided problem of access and distribution in modern finance. Our focus is to enable rapid onboarding and on-chain capital formation for issuers, and to enable efficient distribution and price discovery of all financial assets to investors globally.
Imagine a world where raising capital for specific deals and investing in exciting opportunities can be reduced to a few clicks. With Chateau, this becomes a reality. We leverage simple yet functional DeFi tools, solid legal frameworks, and intuitive user experiences to lower the barrier to important financial use cases.
By bringing traditional financial instruments on chain, Chateau enables radical transparency and global access to sophisticated financial instruments in a manner that is composable with the latest Defi applications.
Chateau unlocks otherwise inefficient and opaque private capital markets.
While other players are attempting to tackle this same problem, we believe in a novel approach that focuses on the simple and functional application of DeFi and legal frameworks.
Chateau enables 3 key innovations that differentiate us in the RWA space:
(i) Simple Compliance Framework
Let’s first address the elephant in the room: US Security Regulations.
While direct US offerings are regulated by SEC issuance rules, non-US products, including derivatives, may be issued by offshore entities to offshore investors without obedience to US-based compliance standards.
Chateau is focused on launching our offerings via an innovative offering framework targeted at international investors.
This puts us in stark contrast to other players who choose to go the U.S.-centric route that limits the amount of each offering and imposes strict transfer limits.
These rules, written in 1946 before transistors and mobile phones, cripple any DeFi product built to comply with their archaic demands.
(ii) Curated Offerings
RWA platforms are only as compelling as the real world assets that underpin them. We leverage our combined decades of experience and connections from Wall Street to Silicon Valley, in an effort to source exclusive deals.
Our debt, equity, and derivative offerings offer attractive upside, while also providing a strong Sharpe ratio, by being backed by proven operators and businesses.
(iii) Fully Composable Tokens
Each Chateau Debt.D and Equity.Ξ offering is issued as a fully composable ERC tokens (or equivalent standard). These tokens can then be used across any DeFi product.
For instance, if you want to sell your tokens before the redemption window, you can on a decentralized exchange like Uniswap.
You can also leverage Chateau tokens as collateral in a borrow/lend protocol. The opportunities are endless.
Debt.D offerings:
The U.S. private credit market is valued at $1.4 trillion. Traditionally, this market has only been open to select institutions and high net worth individuals.
We chose to start with private credit as our first debt instrument since these products offer attractive yield (15% for our $CHAD.D offering) with an attractive Sharpe ratio.
We will also be offering more debt instruments in the future including: Green Impact bonds (11.5%) and U.S. Treasury Bills (5%).
Each debt product is tokenized as an ERC20 token and has its own unique issuance and redemption windows.
Equity.Ξ offerings:
Owning equity in world-class businesses is the best way to build wealth. Unfortunately, the on-ramps for investors have continued to close over the past decade.
Take for instance the protraction of the IPO window. Companies like Amazon, Google, Salesforce, all went public within 4-6 years of their founding.
Today, the most valuable companies (like Stripe) are choosing to stay private for 10+ years. This means most investors cannot gain access until most of the value has been captured in private markets.
We are focusing on unlocking access to private equity markets, with a focus on startup equity & pre-IPO shares. We deliver the best prices on the hottest startups by aggregating deal flow through our brokerage network.
While riskier than other investments, startup equity offers asymmetric upside that is difficult to find elsewhere.
Tokenization also allows for smaller purchases of startup equity and great liquidity.
