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How Can Tokenized RWA Be Used as Collateral in Decentralized Finance (DeFi) Lending Protocols?

RWA tokens act as collateral after wrapping in a permissioned standard that ensures liquidation transfers are compliant.
Greeks.Live16.11.25

How Can Tokenized RWA Be Used as Collateral in Decentralized Finance (DeFi) Lending Protocols?

Tokenized RWA, such as real estate or treasury bonds, can be used as collateral after being wrapped in a permissioned token standard. The lending protocol must integrate with the token's compliance layer to ensure that, in the event of liquidation, the collateral can only be transferred to a whitelisted liquidator.

This manages the regulatory risk of collateral transfer.

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