a16z-backed TrueFi launches DeFi lending market for asset managers
Stablecoin operator TrustToken has launched a new lending marketplace that allows asset managers to create their own decentralized finance products, potentially opening the door to wider mainstream adoption of DeFi solutions.
The new lending marketplace, which is offered on unsecured lending protocol TrueFi, gives independent financial institutions the ability to design, launch and fund new investment products. Asset managers also have access to TrueFi’s pool of lenders and borrowers as well as TrustToken’s institutional offerings.
Version 1 of the TrueFi protocol was shipped to institutional clients in November 2020 around the same time that the native TRU token launched. The protocol allows for the creation of collateral-free loans denominated in the TrueUSD stablecoin and vetted using on-chain credit scores. In 2021, the protocol originated $1 billion worth of loans.
TrueFi is described as an “app store for lending,” but instead of developers launching applications, the protocol enables asset managers to launch new financial portfolios directly on-chain.
Institutions are bullish on #Bitcoin! The amount of BTC held by public companies has gained significant market share from that held in spot ETFs. https://t.co/DZP2AlMXlh
On Thursday, Delt.ai, a Mexico-based Y-Combinator startup, was announced as TrueFi’s first non-crypto financial partner. Since December, the startup has used TrueFi to originate millions of dollars worth of loans and expects to lend up to $25 million to Latin American businesses by the end of 2022.
TrueFi’s current lenders are “largely private, pseudo-anonymous individuals and family offices in DeFi, participating at a range of investment sizes,” TrustToken CEO Raphael Cosman told Cointelegraph in a
Read more on cointelegraph.com
