Introduction
Introduction
Over $10 trillion worth of financial assets are expected to be tokenized until 2030, driven by institutional adoption. However, existing lending markets both lack the compliance rails to support these assets and the mechanisms in place to prevent liquidity fragmentation, caused by different parties tokenizing the same underlying asset.
The total amount of tokenized RWAs has been skyrocketing in recent months, as institutions start embracing blockchain technology for efficiency and better liquidity As such, the relevance for an RWA-friendly lending market that modularly supports these assets has never been bigger. That is where Mystic comes in.
Mystic is a lending market fit for RWAs, where users can lend and borrow using their tokenized RWAs as collateral. We set compliance requirements at the asset level, to maximize permissionless exposure whilst remaining compliant with all relevant AML regulations. Mystic also enables supplying liquidity to entire asset classes, which maximizes liquidity per market and boosts supply APR.
In order to be in line with regulations and facilitate the handling of securities, Mystic has a novel approach to protocol building. The whole protocol is built with a partner regulated custodian so that any time an asset is in a pool, it is being kept with a regulated custodian. This combination makes Mystic the obvious lending choice for compliance-minded institutions and RWA holders and issuers alike. The protocol is a semi-permissioned fork of Aave V3, a very popular and battle-tested lending and borrowing protocol. Mystic has been adjusted to support both permissionless tokens (e.g. USDT) and permissioned tokenized real-world assets (RWAs).
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Read more about Mystic and how we are changing finance for the better on our website:
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