What does institutional adoption actually look like today?
Not institutions buying and holding crypto but issuing offchain assets -> onchain (RWA's) and utilizing them in DeFi
End-to-End Private Credit Example 🧵 ..
2/ Fund account
You can use @ZeroHashX to onboard USD or you can connect your crypto wallet.
4/ Sign and Fund Wallet
You will need to sign an agreement electronically to invest and then you can chose what wallet the tokenized funds will be sent to. I imagine this step will be simplified over time.
5/ Enter DeFi
I chose to receive my funds on Solana because that is the main chain I use, however I wanted to take advantage of the looping strategy on @morpho, managed by @gauntlet_xyz.
So I used Securitize and Apollo's native bridge, Wormhole, to send some of my position to @0xPolygon where there is an $ACRED market on Morpho.
6/ Convert to wrapped token
In order to use $ACRED within DeFi it needs to be wrapped into securitize's permissionless wrapper contract so you can utilize the asset. For this you need to sign a separate loan agreement. Updates coming soon to this to make it easier from what I understand.
7/ Deposit into DeFi
Entered a pretty basic/conservative looping position via @morpho to push the yield north of 10%~
8/ Conclusions
While there are still areas where this process can be improved, it is important to take a step back and realize that institutions are finally coming onchain.
Tokenizing an asset is one thing, but adoption in DeFi is what I will be watching.
Value props:
- administrative burden cut down with room for more
- lower barrier to entry for investors to access these assets
- settlement speed
- trading hours
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