DeFi Technologies and SovFi launch framework for sovereign debt market

TORONTO - DeFi Technologies Inc. (Nasdaq:DEFT) (CBOE CA:DEFI), whose stock has surged 72% over the past year and maintains a market capitalization of $15.15 million, announced Wednesday a collaboration with SovFi Inc. to introduce a sovereign finance framework targeting the $100 trillion sovereign debt market. According to InvestingPro data, the company’s shares have shown strong momentum, gaining over 26% in the past six months.

The partnership aims to deliver a new class of principal-protected, capital-appreciating sovereign instruments. According to the press release, SovFi’s patent-pending structure converts bond coupon payments into Bitcoin inside regulated exchange-traded products issued through Valour, a DeFi Technologies subsidiary, while preserving the principal in the underlying bond. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.08, suggesting strong operational stability.

At maturity, investors receive both the bond principal and the market value of accrued Bitcoin. The framework focuses on rated, liquid benchmark bonds that pay regular coupons.

In the collaboration, SovFi designs the instruments, while Valour creates, issues, and lists them. DeFi Technologies provides issuance, liquidity, and analytics services, with BTQ Technologies delivering post-quantum secure settlement.

"DeFi Technologies is aligning issuance, liquidity, analytics, and secure settlement to modernize how sovereign debt is financed and held," said Olivier Roussy Newton, CEO of DeFi Technologies, in the statement.

The companies claim the framework could help countries reduce debt, attract foreign direct investment, and improve sovereign market liquidity. The initiative includes three product types: capital appreciation sovereign debt instruments, foreign direct investment capital market bridge instruments, and commodity-underlying structured instruments.

Revenue will be generated through management fees on both bond and Bitcoin components, staking revenue, and minting and redemption fees for stablecoins.

DeFi Technologies will present the framework at its Insights Symposium on September 25 in Frankfurt, Germany, followed by a shareholder call in the coming weeks. With the stock currently trading at $126.21, near its 52-week high of $139.17, investors can access additional analysis and 5 more exclusive ProTips through InvestingPro’s comprehensive financial toolkit.

In other recent news, DeFi Technologies Inc. reported adjusted revenue of $32.1 million for the second quarter ended June 30, 2025, marking an increase from $25.3 million in the same period last year. The company also posted an adjusted EBITDA of $21.6 million and adjusted net income of $17.4 million, showing significant improvement compared to the previous year’s losses. Additionally, DeFi Technologies announced that its subsidiary Valour Inc. reached $974 million in assets under management as of August 29, indicating a 2.85% month-over-month growth. Earlier, Valour had reported a 23% monthly growth in AUM, reaching $947 million by July 31, driven by rising digital asset prices and net inflows into their exchange-traded products.

In another development, DeFi Technologies launched the world’s first physically-backed Bitcoin staking exchange-traded product on the London Stock Exchange. This new product, 1Valour Bitcoin Physical Staking, offers a 1.4% annual staking yield. The company also identified discrepancies in share ownership records during its shareholder intelligence initiative, noting differences between reported beneficial ownership and depository records. These recent developments highlight DeFi Technologies’ ongoing growth and initiatives in the financial technology sector.

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