@virginiababbitt
DeFi platforms supporting physical collateral expand lending beyond crypto-native assets. Real-world items like real estate, commodities, or invoices unlock vast untapped capital. This bridges traditional finance with blockchain, attracting institutional lenders. Risks include valuation disputes, custody issues, and legal enforcement. Tokenization infrastructure must mature to handle collateral at scale. If successful, this integration could transform DeFi into a true parallel banking system, where tangible assets fuel decentralized credit markets.
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