Users can now borrow, lend, and trade tokenized gold and silver via Folks Finance<\/p>\n
Folks Finance, the top DeFi protocol on the Algorand network, launched tokenized representations of gold and silver on Dec. 4.<\/p>\n
Users can now lend, borrow, or trade the new GOLD and SILVER tokens via Folks Finance. Each token is backed by one gram of physical gold or silver. The metals are provided by Meld, a firm facilitating trade in fractionalized gold and silver bars.<\/p>\n
Folks Finance described the launch of its new tokens as a \u201cpivotal step in bridging conventional finance with decentralized finance, unlocking the utilization of real gold and silver in DeFi loans and trades.\u201d<\/p>\n
Folks continued that they hope to attract new users from the traditional finance sector, noting recent growth in the adoption of real-world assets in web3. The protocol also launched support for Stasis\u2019s EURS token<\/a> on Nov. 22, expanding the range of tokenized legacy assets supported by Folks Finance.<\/p>\n \u201cThis listing is a testament to our commitment to expanding RWA offerings and making DeFi more accessible to a wider range of users,\u201d said Benedetto Biondi, CEO of Folks Finance.<\/p>\n Folks Finance boasts a total value locked of $96.5M, according to DeFi Llama. The protocol launched in April 2022.<\/p>\n The launch of GOLD and SILVER on Folks Finance coincides with the price of gold rallying to new all-time highs<\/a> this week. Gold is up 18.5% since the start of October, with analysts attributing the move to expectations that the U.S. Federal Reserve\u2019s wave of interest rate hikes is over.<\/p>\n The news also comes as real-world assets (RWAs) are garnering significant adoption within crypto, with an increasing number of projects moving to embrace U.S. Treasury Bills.<\/p>\n MakerDAO led the charge, with its RWA portfolio growing<\/a> from $17M to $2.8B since the start of 2022, including more than $2.35B worth of exposure to U.S. Treasury Bills.<\/p>\n In August, Ondo Finance launched USDY, a yield-bearing stablecoin backed by U.S. Treasuries and bank deposits.<\/p>\n Start for free<\/a><\/div>\n Last week, Web3 Foundation, the organization behind Polkadot, a $1M pilot<\/a> investment into U.S. Treasury Bills via Anemoy, an asset issuer operating on the RWA-focused Polkadot parachain, Centrifuge Chain. The Web3 Foundation said it plans to increase its allocation in the future.<\/p>\nOn-chain RWAs gather momentum<\/h2>\n
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