Tokenized FTX receivable is used as collateral for a loan

Creditor of now bankrupt crypto exchange FTX pledged $31,307 claim as security for DeFi loan .

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A creditor of now bankrupt crypto exchange FTX has pledged a claim as collateral for a loan under the decentralized finance (DeFi) protocol Arcade. The transaction was the first on-chain loan backed by an FTX claim, according to bankruptcy claims platform Found.

The $31,307 claim was tokenized and its ownership was represented by a non-fungible token (NFT). On June 23, the NFT was used as collateral for a $7,500 loan to be repaid in five days. In case of default, the lender has the right to claim.

✨Congratulations to wagmiclaims.eth for being the first online #RWA loan backed by a #FTX #bankruptcy #claim

WAGMI is happy to have spent the money for the @Azuki Vegas party this weekend

Special thanks to @Arcade_xyz for building a great platform pic.twitter.com/l8n8jGyKpp

— Found (@foundxyz) June 23, 2023

The transaction is an example of real-world asset tokenization (RWA), in which a token represents ownership rights to an asset on a blockchain. Within DeFi, asset tokenization is one of the most important areas, as a wide range of real-world assets can be tokenized, including stocks, government bonds, real estate, and commodities. premieres.

On Twitter, Found said the original creditor and lender had undergone their Know Your Customer and Anti-Money Laundering biometric checks. According to the company's website, it allows users to access loans using bankruptcy claims as collateral for a 10% transaction fee on successful transactions.