- Securitize’s new sToken lets institutional investors access DeFi liquidity while still earning returns on their real-world assets.
- The partnership with Elixir makes it easier for traditional finance to join the DeFi space, offering more ways to invest.
- Securitize’s new sToken allows tokenized RWAs to engage in DeFi while maintaining consistent returns, expanding the DeFi landscape.
Securitize, a leader in tokenization, unveiled its new “sToken” based on ERC-4626 vault technology. This innovation, through its subsidiary Securitize Credit and a partnership with Elixir’s deUSD RWA Institutional Program, creates new yield opportunities.
Decentralized financing liquidity is now available to institutional holders of securitized Real World Assets (RWAs) without compromising the returns on their initial investments. With this move, Securitize’s presence in the expanding DeFi market is further increased, opening up traditional assets to digital economies.
Unlocking Liquidity for Real-World Assets
Securitize’s sToken functionality offers more than $1 billion worth of RWAs in DeFi. These assets were initially tokenized by Securitize and are now available for liquidity through the deUSD platform. Importantly, this allows institutional clients to continue earning yields from their underlying assets while still engaging in DeFi activities. Consequently, this partnership empowers institutions to leverage both traditional and DeFi-native investment opportunities.
Additionally, this action gives investors more options by positioning Securitize as a leader in bridging the gap between traditional finance and DeFi. Carlos Domingo, co-founder and CEO of Securitize, stated, “This functionality enables a new frontier in DeFi.” “Investors can now combine traditional asset-backed security with the high-yield potential of DeFi to manage and optimize their portfolios in new ways.”
Elixir’s Role in the Innovation
Elixir’s deUSD is crucial in enabling this liquidity transition. The deUSD platform serves as a decentralized US Dollar, powering the integration of tokenized assets into DeFi ecosystems. For the first time, investors can use their tokenized RWAs directly on-chain, enhancing liquidity and access to decentralized markets.
“We’re excited to bring this 0 to 1 innovation to DeFi,” said Philip Forte, CEO of Elixir. He emphasized that this partnership signals a significant leap in bringing institutional investments and decentralized liquidity closer together.
The Future of Tokenization and DeFi Integration
While tokenization has proven beneficial for efficiency and market inclusivity, challenges like regulatory concerns and integration barriers have slowed widespread adoption. Securitize and Elixir’s initiative addresses these issues by providing seamless integration into DeFi, offering new opportunities for institutional investors. Furthermore, this partnership promises to make tokenized assets more accessible, creating a roadmap for broader DeFi adoption among traditional finance institutions.
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