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- Backed Finance provides its ERC-20 btokens through Ethereum, Gnosis chain, and Polygon network.
- The launch on the Polygon network was strategic as it will help Backed Finance reach more DeFi users with the exception of the U.S.
The Polygon (MATIC) network, a leading Ethereum-based scaling solution, has attracted significant institutional and retail attention amid global blockchain adoption. The $6.35 billion valued network is, however, under the U.S. SEC’s radar for not registering under the securities law.
Nevertheless, the Polygon network is arguably one of the most undervalued crypto ecosystems based on its development and adoption.
Backed Finance Taps on Polygon For Growth Prospects
In the latest developments, Backed Finance, a Swiss start-up bridging real-world assets to on-chain tokens, now uses the Polygon ecosystem to issue tokenized assets. According to the announcement, Backed Finance will leverage the Polygon network to issue its Tokens to more investors.
The Swiss startup noted that the decision to integrate with the Polygon network was heavily informed by the fact that it helps scale its operations via the Ethereum chain.
According to Giorgio Giuliani, Head of Product at Backed Finance, the startup has unlocked new opportunities via Polygon. Giorgio added;
This move aligns perfectly with our vision of seamlessly integrating traditional assets into the DeFi ecosystem. With Polygon’s scalability and vibrant community, we can provide a smoother and more cost-effective experience for our users while fostering a truly decentralized and inclusive financial landscape. We believe this expansion will accelerate the adoption of real-world asset-backed tokens and drive innovation in the DeFi space,
The integration of Backed Finance and Polygon network is strategic since the latter helps the former scale to more DeFi protocols on the leading smart contract ecosystem.
3️⃣ Interoperability and Composability: Backed's integration with Polygon allows our tokens to seamlessly interact with other DeFi protocols and applications within the Polygon ecosystem. Explore diverse DeFi use cases while retaining ownership of real-world assets.
— Backed (@BackedFi) June 8, 2023
The integration is also mutually beneficial to the Polygon network, which is poised to process more transactions through token offerings. Moreover, the tokenization of real-world assets is an industry expected to scale to trillions of dollars in the coming years as blockchain technology gets adopted worldwide.
Currently, Backed Finance provides tokenization of assets including stocks, ETFs, and bonds to ERC-20 tokens that are highly accessible worldwide. The first product from Backed Finance was the bCSPX ERC-20 token that tracks the popular iShares Core S&P UCITS ETF.
.@BackedFi, a frontrunner in bridging real-world assets, is now deploying its token offerings #onPolygon
Signifying a step forward in enabling more frictionless & accessible financial ecosystems 🌐 https://t.co/COVwY0ddAN
— Polygon (Labs) (@0xPolygonLabs) June 9, 2023
Market Outlook
The Polygon network has made tremendous progress with different scaling solutions that fit different clients. Currently, the Polygon team is working on the zkEVM mainnet launch with beta currently running its final tests. The Polygon zkEVM is touted to onboard more DeFi users since it offers fast transactions with near-zero fees. The average cost per transaction is currently at around $0.018, which is more than 1000 percent cheaper than on the Ethereum network.
As a result, decentralized financial protocols like Backed Finance will be able to onboard more users ahead without the worry of network congestion.
