coinIX GmbH & Co. KGaA has invested in Florence Finance, a protocol enabling SMEs to access liquidity through crypto loans, aiming to bridge the gap between traditional finance and DeFi.

Target Information

Florence Finance is an innovative protocol that enables financing platforms for small and medium-sized enterprises (SMEs) to access liquidity through crypto loans sourced from the Decentralized Finance (DeFi) sector. By serving as a bridge between traditional finance and the cryptocurrency realm, Florence Finance addresses two significant hurdles: the substantial funding gap for SME loans, which stands at €1 trillion across Europe, and the lack of sustainable yield options within the crypto space through collateralized loans backed by real assets.

The dedicated team behind Florence Finance collaborates with existing loan platforms focused on SMEs, enhancing the protocol's utility. Future improvements include integrations with established DeFi protocols such as MakerDAO, Compound, and AAVE.

Industry Overview

The DeFi sector has emerged as a transformative force within the financial industry, particularly in Europe, where it is increasingly seen as a solution to traditional funding challenges. The current landscape is characterized by a growing appetite for