Defi, SovFi launch sovereign finance framework

Mr. Olivier Roussy Newton reports DEFI TECHNOLOGIES AND SOVFI UNVEIL FULL-STACK SOVEREIGN FINANCE FRAMEWORK TO MODERNIZE THE $100T+ SOVEREIGN DEBT MARKET Defi Technologies Inc. has formed a landmark collaboration with SovFi Inc. The collaboration introduces a comprehensive sovereign finance framework designed to help countries reduce debt, attract foreign direct investment and deepen sovereign capital-market liquidity. The platform delivers a new class of principal-protected, capital-appreciating sovereign instruments alongside the Defi Technologies Group's integrated stack for issuance, liquidity, analytics, tokenization and BTQ's postquantum secure settlement, targeting a market that exceeds $100-trillion. The global challenge Global sovereign debt exceeds $100-trillion. Traditional sovereign bonds are generally safe but provide limited upside, leaving governments with few tools to reduce debt through market mechanisms. SovFi's breakthrough SovFi's patent-pending structure converts bond coupon payments into bitcoin inside a regulated exchange-traded product issued exclusively through Valour, a wholly owned subsidiary of Defi Technologies. The principal remains intact in the underlying bond. At maturity, investors receive the bond principal plus the market value of the accrued bitcoin. The result is a principal-protected instrument with a potential path to capital appreciation. SovFi accelerates growth and creates the potential for capital appreciation across sovereign debt by using proven capital markets rails and exchanges, provided by Defi Technologies' and Valour's network and patent-pending structuring. The process is straightforward: SovFi designs the instruments, Valour creates, issues and lists the SovFi-designed instruments, and focuses on rated, liquid benchmark issue bonds that pay coupons, are regularly reissued and trade on well-known secondary markets. Each product is digitally hybridized so coupons accrue inside the structure, the instrument matures or rolls on a predetermined cadence, and when held to maturity, the final coupon and face value are reinvested into the next benchmark issue. Units are tokenization ready, and a public vehicle may aggregate baskets of SovFi instruments to concentrate liquidity and support direct engagement with dealers and sovereign treasuries. Products Capital appreciation sovereign debt instrument: patent-pending accruing digital asset coupon yield sovereign debt. The flagship SovFi product uses patent-pending technology to wrap sovereign and multilateral development bank benchmarks into a single listed product that holds the underlying bond plus accrued value. Foreign direct investment capital market bridge instruments: The second product for SovFi is a set of instruments which list in regions of high capital, cross-list in the target market and serve as a foreign direct investment capital bridge into highly performant, highly liquid, risk mitigated assets. Commodity underlying ETP (exchange-traded product) structured instruments: The third product for SovFi is designed to bring yield to sovereign -backed commodities like gold and other liquid minerals, whilst continuing to enhance liquidity in the sovereign debt capital market space. Research, analysis, metrics and scoring that provide standardized analytics and scoring to support diligence, pricing and index construction. Together, these elements create a simple, scalable framework that turns benchmark debt into an appreciating, listed exposure while opening complementary equity and commodity channels and supplying the analytics needed for institutional adoption. Go-to-market roles and revenue model Defi Technologies serves as the platform orchestrator: issuance through Valour, liquidity and market-making through Stillman Digital, and data and ratings through Reflexivity Research; SovFi is the product architect, responsible for product design, sovereign engagement, benchmark selection, and expansion across FDI and commodity tracks. BTQ Technologies provides postquantum secure tokenization and settlement via QSSN. Fees Bond sleeve management fee; BTC sleeve management fee; BTC staking revenue; Stablecoin and yield coin minting fee; Stablecoin and yield coin redemption fee. Illustrative economics across three benchmark bonds (per $1-billion notional) 2020 five year, 0.75 per cent Issuer revenue: approximately $6.09-million per year, $30.46-million over the life: Annual breakdown: bond fee 4.999 million, bitcoin sleeve fee 0.386 million, staking 0.707 million. Investor outcome versus traditional: SovFi investor net 74.13 million vs. traditional coupon income 37.50 million; Multiple of SovFi bond vs traditional bond: 2.79. 2018 seven year, 3.88 per cent Issuer revenue: approximately $25.46-million per year, $178.25-million over the life: Annual breakdown: bond fee 5.000 million, bitcoin sleeve fee 9.034 million, staking 11.429 million. Investor outcome vs. traditional: SovFi investor net 1,399.01 million vs. traditional coupon income 271.60 million; Multiple of SovFi bond vs traditional bond: 5.81. 2021 three year, 3.74 per cent Issuer revenue: approximately $6.72-million per year, $20.16-million over the life: Annual breakdown: bond fee 5.001 million, bitcoin sleeve fee 0.416 million, staking 1.303 million. Investor outcome vs. traditional: SovFi investor net 201.51 million vs. traditional coupon income 112.20 million; Multiple of SovFi bond vs traditional bond: 1.98. Notes: Figures are modelled outputs per $1-billion of wrapped bonds and reflect the blend of bond sleeve fees, bitcoin sleeve fees and staking revenues, alongside investor net outcomes based on coupon conversions accrued inside the product. The flywheel Design and list instruments through Valour across Defi Technologies' exchange network; Accrue and roll coupons into bitcoin at each payment date, mature or roll on an annual or biannual schedule, and reinvest into the next benchmark issue; Aggregate and scale through a public vehicle that holds baskets of instruments, concentrates liquidity and supports engagement with dealers and sovereign treasuries; Broaden access by cross-listing and opening institutional channels to pensions, insurers, banks and asset managers, which grows assets under management; Reinforce economics as higher assets increase bond fees, bitcoin sleeve fees and staking income, which fund further listings, deeper liquidity and expanded analytics. A transformational opportunity SovFi has the potential to be the new Tether -- where, instead of being a world leader in stablecoins backed by United States treasuries, SovFi's unique proposition will be to be the world leader in the creation of sovereign debt reducing assets that are yield generating, capital appreciating, digital asset hybridized structured instruments with sovereign-issuer-backed underlying debt. As at publication, the market value of the following asset classes are: Bitcoin is approximately $2.35-trillion (U.S.); The entire crypto market is approximately $3.94-trillion (U.S.); Nvidia is approximately $4-trillion (U.S.); Gold is approximately $25-trillion (U.S.); Equities are approximately $125-trillion (U.S.); Debt is approximately $325-trillion (U.S.); Sovereign debt represents a staggering $100-trillion (U.S.);. Through its patent-pending process, SovFi tackles the massive sovereign debt problem through the creation of a new class of asset that brings the possibility of capital appreciation to bonds, thereby enabling investors and countries to hold their debt in structured instruments that have the potential to appreciate over time. This capital appreciation when applied to sovereign debt instruments gives national treasuries and governments the ability to pay down their national debt by holding the company's SovFi structured instruments that leverage its patent-pending technology -- something that has thus far proven to be an impossibility. Executive commentary "Defi Technologies is aligning issuance, liquidity, analytics and secure settlement to modernize how sovereign debt is financed and held," said Olivier Roussy Newton, chief executive officer of Defi Technologies. "The SovFi framework adds capital appreciation to rated bond exposure while preserving principal, creating a clear pathway for countries and investors to participate in a more efficient, market-driven sovereign finance system." "Defi Technologies has built its platform around bridging capital markets with decentralized innovation, said Andrew Forson, president of Defi Technologies. "The SovFi framework represents a natural evolution bringing sovereign debt into the digital era with instruments that not only preserve principal but also potentially appreciate over time. This is a once-in-a-generation innovation that positions Defi Technologies at the heart of solving the most pressing financial challenge of our era: national debt." Defi insights symposium and shareholder call The company will present and discuss the SovFi framework in the closing address at the Defi Technologies Insights Symposium on Sept. 25, 2025, in Frankfurt, Germany. The company will also host a shareholder call in the coming weeks to discuss SovFi and other initiatives, including additional context and timelines. About Defi Technologies Inc. Defi Technologies is a financial technology company bridging the gap between traditional capital markets and decentralized finance (DeFi). As the first Nasdaq-listed digital asset manager of its kind, Defi Technologies offers equity investors diversified exposure to the broader decentralized economy through its integrated and scalable business model. This includes Valour, which offers access to over 65 of the world's most innovative digital assets via regulated ETPs; Stillman Digital, a digital asset prime brokerage focused on institutional-grade execution and custody; Reflexivity Research, which provides leading research into the digital asset space; Neuronomics, which develops quantitative trading strategies and infrastructure; and Defi Alpha, the company's internal arbitrage and trading business line. With deep expertise across capital markets and emerging technologies, Defi Technologies is building the institutional gateway to the future of finance. We seek Safe Harbor.