📘 Introduction
Access to working capital remains a major barrier for over 2 billion businesses (“Merchants”) globally — many of whom lack traditional credit histories or have unpredictable income streams.
Sivo, a Y Combinator–backed capital provider, addresses this gap by purchasing future revenue through true-sale factoring of merchants’ payment obligations. This unlocks liquidity instantly, without waiting on traditional payout cycles.
These factored payment flows form the foundation of a new class of on-chain real-world assets called Tokenized Receivable Obligations (TROs) — represented initially by sUSDC.
💡 What Are TROs?
TROs are fungible tokens that represent Sivo’s receivables, structured as true-sale commercial transactions (not loans or securities).
Each token is backed by payment flows that Sivo is contractually entitled to collect. TROs are:
- Purchased at a discount
- Named for the purchase currency (e.g.,
sUSDC) - Redeemable at par as receivables settle
Each sUSDC token corresponds to an individual receivable legally owned by Sivo and is designed to appreciate in value as the associated payment is fulfilled. The on-chain Exchange Rate increases over time, reflecting receivable settlement progress.
TROs are sold with a base discount (e.g., 20% APY-equivalent). SVO holders — participants in Sivo protocol governance — receive an additional dynamic discount that adjusts with market supply and demand (similar to a slope rate), while maintaining a minimum floor at the base level.
⚙️ Why Factoring?
Factoring is a centuries-old, globally recognized commercial transaction structure — not a loan or investment product. Its legal clarity, compliance, and scalability make it an ideal foundation for real-world tokenization.
The global factoring market is projected to reach $6.65 trillion by 2033, and when extended to short-duration payment flows, the opportunity becomes much larger.
🌍 Market Opportunity
In 2023, global digital payment volumes exceeded $20 trillion, driven by:
- Visa – $14.8T
- Mastercard – $9T
- Stripe – $1T+
If the protocol were to factor just 0.1% of annual global digital payment flows, it could enable up to $20 billion in tokenized receivables annually, generating over $100 million in buyer discounts — while unlocking faster, more efficient capital access for merchants and workers.
The sections that follow provide a detailed overview of how to sell and buy revenue, how the protocol works, how sUSDC is issued and redeemed, and the legal and technical framework supporting this new class of tokenized real-world assets.
Curious about how we leverage DeFi to deliver a world-class experience? Check out our White Paper at Sivo.xyz and follow us on X or join our Discord community for feature releases, events, and developer support.
Updated 1 day ago