News Scrap

TL;DR

  • Securitize launches “sToken,” a feature based on ERC-4626 vault technology to improve liquidity and composability of tokenized assets in DeFi.
  • The new functionality, in collaboration with Elixir, allows institutional investors to access USD liquidity while still generating yields.
  • Over $1 billion in Securitize Real World Assets (RWAs) can be deployed in DeFi without losing the benefits of traditional investments.

Securitize has taken a major step towards integrating traditional assets with the DeFi ecosystem by launching a new feature called “sToken.”

This tool, which uses ERC-4626 vault technology, allows tokenized assets to gain greater liquidity and be more composable within decentralized finance.

Innovation not only expands the possibilities for traditional investors, but opens up new performance opportunities within the digital and blockchain world.

The launch of sToken is made possible through a collaboration with Elixir and its “deUSD RWA Institutional Program,” which enables institutional holders of over $1 billion in Real World Assets (RWAs) tokenized by Securitize to access deUSD liquidity without sacrificing returns derived from their underlying assets.

This advancement means that traditional assets, such as investment funds or real estate, can be used within the DeFi environment to offer new forms of investment and portfolio optimization.

According to Securitize, this type of functionality represents a milestone for the tokenization industry, as it allows real assets to interact directly with the digital economy without losing their value or exposure.

As noted by Carlos Domingo, co-founder and CEO of Securitize, this advancement makes it easier for investors to manage their assets more efficiently while reaping the benefits of both traditional returns and opportunities within DeFi.

BlackRock's BUIDL token debuts as part of Securitize's new sToken initiative

Impact and future of sToken in DeFi and traditional finance

The partnership with Elixir not only offers increased liquidity, but also introduces a new model for traditional financial institutions to actively participate in the DeFi space.

Through the use of deUSD, a decentralized digital currency, investors will be able to continue generating returns on their traditional assets while interacting in DeFi, while keeping their exposure to collateral risks limited.

This opens the door to new forms of investment that combine the best of both worlds: traditional finance and digital.

The impact of this new functionality is considerable, as it offers an effective solution for institutions that have been reluctant to participate in DeFi due to lack of collateral or volatility.

With sToken, Securitize provides a bridge between both ecosystems, allowing institutional investors to access the advantages of decentralized finance without compromising the traditional returns that have been a cornerstone of their portfolios.

As this technology gains traction, it could lead to wider adoption of asset tokenization in financial markets. Benefits include increased liquidity, portfolio diversification, and the ability to access a wider range of investment opportunities.

In fact, many experts believe that the future of finance will be marked by the convergence of traditional finance with the DeFi world, and with initiatives such as Securitize, that future seems increasingly closer.

This type of innovation underscores DeFi’s potential to transform the financial market, providing solutions that are not only useful to larger investors , but also to smaller participants looking to leverage advances in blockchain technology to improve their returns.