Folks Finance, one of the leading cross-chain decentralized finance (DeFi) protocols, has announced a strategic partnership with a licensed Virtual Asset Service Provider (VASP) based in Georgia.
This collaboration marks a significant step towards the integration between the DeFi world and regulatory compliance needs, thanks to the launch of a new regulated and independent CeDeFi mobile app, aimed at both retail and institutional users.
A Regulated CeDeFi App: Features and Objectives
The new application, developed in parallel with the main Folks Finance protocol, will be managed independently and will offer a range of compliance-ready services.
Among the planned features are identity verification (KYC), digital asset custody, and the issuance of debit cards backed by on-chain collateral. These tools are designed to meet the security and transparency needs required by users operating in a regulated environment.
According to Benedetto Biondi, founder of Folks Finance, the company’s mission has always been to promote a “practical openness,” meaning a practical openness that allows the benefits of DeFi to reach a wider audience, without neglecting compliance and risk management.
“By operating a separate app under a licensed VASP, we can offer features such as custody, debit cards, and, in the future, even limited access to real-world assets (RWA), while maintaining the connection with permissionless DeFi infrastructures where it makes sense to do so,” stated Biondi.
An Innovative Model: Balance between Protection and Decentralization
This initiative represents one of the first attempts by a DeFi protocol to work closely with a VASP on a parallel regulated platform. The goal is to offer users a familiar and secure experience without giving up the operational benefits of decentralization.
The integrated protection measures include:
- Identity verification (KYC/AML)
- Digital custody of assets through a regulated entity
- Transaction monitoring
- Debit cards linked to on-chain collateral
These tools allow for the creation of a regulated environment for retail and institutional users, without excluding access to permissionless DeFi infrastructures where appropriate. In this way, Folks Finance aims to meet the needs of those who require regulated and secure services, as well as those who prioritize the transparency and programmability typical of DeFi.
The Integration of the FOLKS Token: New Opportunities for Users
A central element of Folks Finance’s strategy is the FOLKS token, a utility token issued on the main protocol and accessible via decentralized smart contracts.
The plan includes the integration of FOLKS into the regulated app as well, while maintaining a clear separation between protocol and application. This way, users can benefit from advantages, rewards, and features related to the use of the token, both on the main platform and the regulated app.
A Bridge between Compliance and Innovation
The partnership between Folks Finance and the licensed VASP serves as a model for the entire sector, demonstrating that it is possible to reconcile compliance and innovation.
“Some users and institutions require regulated and secure services, while others prefer the transparency and programmability of DeFi. This collaboration offers the best of both worlds,” Biondi emphasized.
The approach adopted by Folks Finance allows to:
- Offer regulated services through the licensed app
- Maintain access to permissionless DeFi infrastructures
- Ensure protection and transparency for users
- Develop an ecosystem where decentralization and compliance coexist
Folks Finance: A Growing Ecosystem
Folks Finance confirms itself as one of the main players in the decentralized finance landscape, offering lending, borrowing, and staking tools on nine different blockchains. Thanks to this new initiative, the platform strengthens its role as a bridge between the traditional financial world and the decentralized one, paving the way for new opportunities for retail and institutional users.
For more information, you can visit the official site folks.finance and follow the platform’s social channels.