Stablecoin operator TrustToken has launched a new lending marketplace. That allows asset managers to create their own decentralized financial products. This could open the door to wider mainstream adoption of DeFi solutions.
The new lending market Available on the unsecured lending protocol, TrueFi allows independent financial institutions to design, launch and finance new investment products, and also gain access to TrueFi’s portfolio of lenders and borrowers, as well as institutional offerings. of TrustToken
TrueFi protocol version 1 cheapsendto institutional clients in November 2020, around the same time the original TRU token was launched. The protocol allows for the creation of unsecured loans in the TrueUSD stablecoin currency and validated using a credit score in the network, and by 2021 the protocol has generated over $1 billion in loans.
TrueFi is described as an “app store for lending,” but instead lets developers launch apps. This protocol allows asset managers to open new financial portfolios directly on the network.
On Thursday, Mexico-based Y-Combinator startup Delt.ai was announced as TrueFi’s first non-crypto-finance partner since December. TrueFi is used to create millions of dollars in loans. It is expected to lend up to $25 million to businesses in Latin America by the end of 2022.
TrueFi’s current lenders are “mostly anonymous and family offices in DeFi, engaging in a variety of investments,” TrustToken CEO Raphael Cosman said in a written statement. There is more variety as well. with both crypto hedge funds Startups backed by venture capital and traditional financial institutions to be incorporated soon.
When asked about the driving force behind the adoption of blockchain-based financial products in burgeoning institutions, Cosman said that “funds tend to seek the best rewards and risks,” whether from DeFi or finance. traditional
“The best yields are no longer in traditional markets, like stocks or bonds, but in DeFi,” he said. Come to chian and we expect it to continue.”
But despite the promise of higher returns The transition to the unfamiliar world of crypto is not an easy task for many financial institutions.
“First of all, organizations need time to understand and feel comfortable with crypto. This includes understanding the technology, risks, the mechanisms of trading and custody of assets, and how money can be brought in and out of crypto. […] The same goes for regulatory compliance and regulatory clarity.”
Institutional involvement in the blockchain industry has expanded exponentially in the past year. where asset managers have bought cryptocurrency funds andfinancial institutions that use transactionsmore crypto Many crypto-focused companies have also expanded their services to target institutions, mainly ConsenSys, the blockchain infrastructure provider behind MetaMask, in May 2021 announced a new service designed to prepare institutional players in the DeFi ecosystem.