Token-registered, bank-settled SME credit for supervised investors
Bridging Georgian SMEs with institutional capital on regulated rails. State-aligned modernization: keep prudential control, add programmable transparency where legacy pipes stop.
The Disconnect
High-growth economies like Georgia (9.4% GDP growth in 2024) have hundreds of profitable SMEs that cannot access international capital. Current systems block natural capital flow.
Global Capital Seeking Returns
Institutional investors looking for emerging market yields with proper infrastructure
The Problem
Current systems weren't built for this scale. Traditional cross-border debt infrastructure is too expensive and complex for SMEs, while local markets lack the depth to meet demand.
Built for supervised rails, not speculation
Cash stays on licensed banking rails. ERC-3643 tokens provide a tamper-evident mirror and controls so more Georgian SMEs can issue familiar notes to professional investors.
Potential foreign capital from just 1% more cross-border investment into tokenised SME notes
Every note finances real Georgian businesses; transparency and DvP discipline reduce friction and risk.
Cash settlement: SWIFT | SEPA | ACH | local rails (stablecoins only where permitted; Digital Lari later)
The vision
Build a supervised rail that lets Georgian SMEs access professional capital with ERC-3643 controls and bank-settled cash.
State-aligned SME credit rail
Standardised
Dematerialised SME notes with ERC-3643 eligibility and exposure caps
Transparent
On-chain positions mirror the Official Register with bank references for deterministic recon
Prudent reach
Phase 1: professional only; Phase 2: wrappers/diaspora; Phase 3: Digital Lari DvP + regional issuers
Not replacing existing systems - building where legacy rails don't reach while keeping prudential control. The innovation is the supervised access layer, not speculative assets.
Why Georgia, why now
A small open economy can prove supervised tokenised debt faster than large markets.
Supervisory ownership
NBG can run a contained lab: professional investors, one host bank/broker, fiat-only settlement, DLT as mirror.
How the rail works (Phase 1 posture)
Cash stays on bank rails; the token is the registered mirror with ERC-3643 controls.
SME notes issued
Georgian-law dematerialised SME notes; Official Register in the registrar/CSD system.
Funds via bank rails
Investors wire fiat; settlement references are matched; mint/transfer happens only after confirmed funds.
Token as mirror
ERC-3643 enforces whitelist, caps, and rectification rights; DLT state is reconciled and hashed against the Official Register.
Same economics as traditional SME debt. The innovation is the supervised, transparent access rail.
Market validation
Proven RWA and credit platforms show institutional demand when controls and reporting are clear.
Centrifuge
tokenized real-world assets
Goldfinch
emerging-market credit
Maple
on-chain credit rails
First-mover signal
Georgia can be the supervised, regulator-aligned example for tokenised SME credit in an emerging market—distinct from unregulated crypto narratives.
Roadmap: From pilot to macro rail
How KBB evolves inside Georgia's financial architecture and what it signals to supervisors, DFIs, and regional issuers.
Phase 1: Institutional lab
Georgian-law SME notes on ERC-3643; one host bank/broker; professional investors only.
DLT as operational mirror, registrar DB as Official Register; fiat-only settlement.
Goal: evidence on safety, transparency use, and AML/CFT efficacy inside existing perimeters.
Phase 2: Rail and pools
Multi-host issuance on a common ERC-3643/dematerialised rail; pooled SME exposure via funds/SPVs.
Capital-market deepening, originate-and-distribute for banks, cleaner DFI allocation into SME credit pools.
Wrappers for diaspora/foreign qualified investors keep retail protection in the wrapper's home regime.
Phase 3: Signal and scale
DLT register recognition under NBG criteria plus VA carve-out for tokenised financial instruments.
Digital Lari for DvP; unified-ledger style settlement with programmable money and assets.
Regional issuers on Georgian-law rails; external signal: regulated tokenised finance, not a crypto playground.
Build the supervised SME credit rail
Help bring institutional capital into Georgian SMEs without breaking prudential guardrails.
Contribute a slice
Small PR plus one test. Keep the rail tight and auditable.
Add a rail adapter
Parse evidence and produce settlement attestations tied to banking references.
Challenge mechanics
Invariants, rounding, record dates, failure paths—Phase 1 lab posture.
Kartvelian Business Bonds | State-aligned SME credit rail