Folks Finance Has Introduced DeFi Services For Gold and Silver Tokens

On December 4, Folks Finance, the leading DeFi protocol on the Algorand network, launched tokenized representations of gold and silver.

Folks Finance now allows users to lend, borrow, and trade the new GOLD and SILVER tokens. Each token contains one gramme of real gold or silver. Meld, a company that facilitates trade in fractionalized gold and silver bars, provides the metals.

Folks Finance described the debut of its new tokens as a "pivotal step in bridging conventional finance with decentralised finance, unlocking the utilisation of real gold and silver in DeFi loans and trades."

Folks went on to say that they expect to attract new users from the traditional finance sector, citing recent growth in the utilisation of real-world assets in web3. On November 22, the protocol added support for Stasis' EURS token, broadening the variety of tokenized historical assets handled by Folks Finance.

"This listing is a testament to our commitment to expanding RWA offerings and making DeFi more accessible to a wider range of users," said Benedetto Biondi, CEO of Folks Finance.

According to DeFi Llama, Folks Finance has a total locked value of $96.5M. The protocol will go live in April 2022.

The introduction of GOLD and SILVER on Folks Finance coincides with gold prices reaching fresh all-time highs this week. Analysts attribute gold's 18.5% gain from the beginning of October to expectations that the Federal Reserve's series of interest rate hikes is coming to an end.