Securitize Launches Vault System for Institutional DeFi Liquidity

Securitize Credit has launched an S-Token Vault in partnership with Elixir, enabling institutional investors to access DeFi liquidity through DEUSD while retaining benefits from tokenized RWAs.

The initiative was developed by Securitize Credit, a subsidiary of Securitize, as disclosed in a statement disclosed to Bitcoin.com News. It establishes a connection with Elixir’s DEUSD RWA Institutional Program, thereby creating new opportunities in decentralized finance (defi).

Vault System for DeFi Liquidity

This S-Token Vault provides institutional investors with a method to access liquidity through DEUSD while preserving the advantages of their initial investments. In its announcement, Securitize stated that this feature enables liquidity for tokenized RWAs that have been issued on its platform and are valued at over $1 billion.

Carlos Domingo, the co-founder and CEO of Securitize, characterized the vault as a substantial stride toward the integration of traditional finance and the defi network. “This functionality not only offers liquidity options but also serves as a bridge between the digital asset economy and traditional assets, providing investors with additional methods to manage and optimize their portfolios,” Domingo stated.

Philip Forte, the founder and CEO of Elixir, underscored the potential of the collaboration to increase institutional engagement. He clarified that the platform of Elixir, which enables tokenized RWA holders to engage with defi markets seamlessly, is the foundation of DEUSD and its exchange order books.

Forte further stated, “We are of the opinion that this is merely the initial step in the process of bridging the liquidity gap between institutions and defi.”

This partnership is indicative of the ongoing trend of integrating blockchain technology with conventional financial tools to capitalize on defi’s adaptability and interoperability. Nevertheless, the program’s efficacy in surmounting institutional obstacles to blockchain adoption and scaling remains uncertain.

As a broker-dealer and digital transfer agent registered with the U.S. Securities and Exchange Commission (SEC), Securitize is a pioneer in the tokenization of traditional financial assets. The company continues to broaden its services for institutional consumers by operating a regulated alternative trading system (ATS).