The feature of the platform is the introduction of Digital Fund Tokens (DFTs), which anchor investments in high-yielding property development engagements. Investors can onboard themselves by purchasing DFTs at AU$5,000 each, and transactions can be settled using either local currency or cryptocurrency (specifically USDC).
Formed under a managed investment scheme registered with ASIC, MezFi's first fund targets annual returns of 9% to 13% before taxes and post management fees, pegged at 2.2% per annum.
MezFi asserts that their initiative makes classified mezzanine finance opportunities accessible to a broader demographic by “breaking traditional barriers with blockchain innovation”, thus encouraging more inclusive participation in property finance ventures both domestically and internationally.
Furthermore, MezFi CEO, Jerome Dadon emphasizes accessibility: "By dramatically lowering the financial barriers to entry in mezzanine finance deals, you no longer need to be an ultra-wealthy individual to invest like one."
Notably, mezzanine financing, which combines elements of debt and equity, permits lenders to convert debt into equity in events of default but holds a subordinated claim compared to senior debt—implying a higher risk yet enticing potential returns. This feature underscores the innovation MezFi brings, described compellingly by Blockoperators as stepping stones providing transparency and bridging traditional finance (TradFi) with Web3 capabilities.
Investment opportunities are subject to what MezFi terms a “mint window”, a four-month timeframe post-launch where capital gathered will funnel into real estate projects within and outside Australia. Their approach reportedly blends blockchain advancements with regulatory assurance supplied by ASIC, broadening appeal to both blockchain enthusiasts and traditional investors alike.
MezFi goes beyond offering pure financial returns by integrating a cultural dimension into investments through NFTs. Each DFT acquisition is coupled with a digital art piece secured via blockchain, boosting the attractiveness for those leaning into digital collectibles.
Originally reported by Patrick Buncsi in Financial Standard, the collaboration knitting MezFi’s fabrics comprises leading figures seasoned in funds management, property growth, and entrepreneurship—all orchestrating this dynamic duet of cutting-edge tech and customary finance.
