Folks Finance, the top DeFi protocol on the Algorand network, launched tokenized representations of gold and silver on Dec. 4.
Folks Finance described the launch of its new tokens as a “pivotal step in bridging conventional finance with decentralized finance, unlocking the utilization of real gold and silver in DeFi loans and trades.”
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.
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’s EURS token on Nov. 22, expanding the range of tokenized legacy assets supported by Folks Finance.
“This listing is a testament to our commitment to expanding RWA offerings and making DeFi more accessible to a wider range of users,” said Benedetto Biondi, CEO of Folks Finance.
Folks Finance boasts a total value locked of $96.5M, according to DeFi Llama. The protocol launched in April 2022.
See Also: Helius Launches Solana Open-Source Browser XRAY
The launch of GOLD and SILVER on Folks Finance coincides with the price of gold rallying to new all-time highs 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’s wave of interest rate hikes is over.
On-chain RWAs Gather Momentum
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.
MakerDAO led the charge, with its RWA portfolio growing from $17M to $2.8B since the start of 2022, including more than $2.35B worth of exposure to the US Treasury Bills.
In August, Ondo Finance launched USDY, a yield-bearing stablecoin backed by U.S. Treasuries and bank deposits.
However, the yield offered by 10-year U.S. treasury bonds is down 15% since tagging a 15-year high of 5% in late October, according to TradingView.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.