Connecting the worlds of security tokens and decentralized finance (DeFi) is the next logical step for Securitize, a kind of regulatory-compliant fixer when it comes to tracking and trading blockchain-based securities.
Announced Monday, Securitize is teaming up with a protocol called Tinlake from Centrifuge, which uses a clever system of non-fungible tokens (NFTs) to enable real-world assets to participate in DeFi.
In an ideal world, any elements within the Ethereum ecosystem should be able to be built into one another, sharing new and useful features like automated market-making or other functions. This concept, a core tenet of DeFi, is known as Ã¢ÂÂcomposabilityÃ¢ÂÂ (the analogy often used is the omni-building capacity of Lego bricks).ÃÂ
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But thereÃ¢ÂÂs a catch: Digital securities, like their traditional counterparts, are regulated and have several control mechanisms that must be enforced. All securities, whether private or