Real-world assets lending protocol, also known as DeFi, is an emerging concept that enables people to use tangible assets as collateral while borrowing cash. This concept is gaining traction as traditional companies are finding it useful. A consortium consisting of NEOPIN, Galaxia Metaverse, and BKEX Labs are developing a DeFi lending protocol in Korea that uses expensive assets such as real estate and cars as loan collateral. This project is called ELYFI and is based out of Wyoming, USA, that allows people to pursue legal action through its status as a DAO LLC. It also allows assets to be liquidated through it in addition to being used as collateral.

Tokenization is the management of tangible assets through the blockchain, thereby allowing direct asset transfers without brokers. This has been gaining popularity as it offers traditional institutions the opportunity to experience expedited asset transfer without the need to hold crypto. Systems like this are being created by large firms such as Coinbase, Binance, and JPMorgan. JPMorgan had a project running involving the use of Aave-permissioned pool to exchange tokenized Singapore dollars for Japanese yen, using ERC-20 token standards. They also incorporated Polygon's network to facilitate transfers and used MATIC as payment platform. Citibank strongly believes that tokenization could become one of the biggest use cases in blockchain related private markets, expecting the growth to be 80-fold.



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