TrueFi Unveils Lending Protocol for Tokenized Real-World Assets; TRU Jumps 14%
Decentralized finance lender TrueFi plans to launch a real-world-asset-based lending platform, Trinity, to increase the utility of its tokenized U.S. Treasury offering. Trinity will allow users to take out crypto loans using tokenized real-world assets as collateral. The first of these will be TrueFi's Treasury bill token (tfBILL), with other yield-generating tokenized products to be added in the future. Investors can borrow the platform's TRI token by pledging tfBILL tokens and use the borrowed crypto to create DeFi strategies to earn up to 15% annual yield. The proposal to launch Trinity is awaiting approval from the TrueFi decentralized autonomous organization. TrueFi was a significant lender during the previous crypto bull cycle, originating over $1.5 billion of undercollateralized loans. However, its total value locked dropped to $20 million by the end of 2022 from over $900 million in 2021 due to crypto price crashes and borrower defaults.
