Factor converts off-chain receivables into verifiable, programmable on-chain assets through a standardized tokenization framework. Each receivable is transformed into a Factor NFT (F-NFT)—a cryptographically secured representation containing all essential economic and verification data. F-NFTs enable transparency, auditability, and lifecycle tracking without exposing sensitive commercial information.
Importantly, F-NFTs are not individually fundable. They serve as the atomic accounting units of receivables, while pools—aggregated, diversified batches of F-NFTs—are the entities that receive investor liquidity and execute maturity settlements.
Tokenizing receivables solves core inefficiencies in traditional factoring and private credit markets:
Every receivable becomes a digitally signed, on-chain asset.
Investors can see maturity, performance, and default status programmatically.
Automated settlement, enforceable waterfalls, and oracle-driven maturity logic.
F-NFTs integrate into pool contracts, oracles, dashboards, and risk engines.
Documents remain encrypted off-chain; only their hashes appear on-chain.
Tokenization establishes a standardized, tamper-proof representation for each receivable.
Each receivable minted on Factor is represented as an F-NFT, built on an enhanced ERC-721 implementation optimized for real-world credit.