Folks Finance, a leading DeFi protocol in decentralized space, has just given crypto and traditional investors and lenders a powerful stimulus to reenter the crypto market with the announcement of GOLD and SILVER token listings from Meld. The new development adds an entirely new perspective to generally perceived crypto market lending and borrowing principles through the benefit of tangible collateralization.
In a bid to expand its RWA offering, Folks Finance has listed the Algorand-powered GOLD and SILVER tokens, both of which are backed by their corresponding precious metals at 1 gram each. The move marks the first time the commodities are being employed as collateral in crypto lending protocols, adding an entirely new level of trust that is common in traditional markets. Folks Finance intends to bridge the decentralized and traditional financial industries and the listing of Meld’s collateralized digital assets is expected to attract the attention of investors and formerly crypto-wary users alike.
With the crypto market experiencing a revival and edging ever closer to an almost complete merger with traditional finance, it was expected for commodities to make their way into the decentralized space as the most trusted collateral. The availability of precious metals makes the Folks Finance platform the go-to place for users seeking borrowing, lending, trading, and staking facilities.
As Benedetto Biondi, CEO of Folks Finance, stated regarding the announcement of the listing, the company seeks to “expand RWA offerings and make DeFi more accessible to a wider range of users.” With over $100 million in TVL and as an industry leader among DeFi lending protocols, Folks Finance has already proven its commitment to expanding product offerings by listing the EUR stablecoins from Stasis earlier.
The listing of GOLD and SILVER marks an important milestone for both Folks Finance and the DeFi market as a whole, underscoring the importance of tangible collateral in the business. The management at Folks Finance is confident that the development will have a positive impact on user base buildup and investment attraction.
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