HKMA Penalizes IOB's Hong Kong Branch for Breaching AML Regulations

DeFi lost over 75% of its liquidity in 2022, prompting institutions to seek stable yield sources. Zoth enables the restaking of tokenized real-world assets, such as T-Bills and ETFs, by combining off-chain interest with on-chain DeFi yield. ZeUSD, a stablecoin backed by staked RWAs, unlocks composability across DeFi protocols. With RWA tokenization projected to exceed $2T by 2030, Zoth is building core infrastructure for institutional DeFi.

Institutional investors have long sought stable yield sources, and the collapse of DeFi liquidity in 2022 has only underscored this need. Traditional markets offered clarity and stable returns, but the volatility and complexity of DeFi presented significant challenges. Institutions needed a reliable, compliant, and flexible yield solution that could integrate seamlessly with their portfolios.

Enter Zoth, a platform designed to tokenize real-world assets (RWAs) and enable institutions to earn dual returns without losing liquidity or violating compliance. Zoth combines off-chain interest with on-chain DeFi yield, allowing institutions to restake tokenized assets like Treasury bills and ETFs. This innovative approach offers a stable, transparent, and programmable yield instrument that aligns with institutional standards.

The platform introduces ZeUSD, a stablecoin backed by staked RWAs, which unlocks composability across DeFi protocols. ZeUSD enables users to mint the stablecoin without giving up exposure to the original yield source, creating a liquid bridge between regulated collateral and programmable capital. This dual-yield structure can generate returns between 7 and 9 percent, significantly higher than traditional stablecoins.

Zoth's model works by applying institutional finance principles to an on-chain environment. It partners with trusted tokenization firms to issue regulated, real-world collateral that meets compliance and custody standards. The platform's staking system is built for interoperability, allowing ZeUSD to function across DeFi platforms. This composability addresses fragmentation and regulatory uncertainty, making it possible for institutions to deploy capital on-chain without triggering red flags.

The RWA market is rapidly scaling, with over $8 billion worth of assets already issued on-chain. Analysts project that this number will grow beyond $2 trillion by 2030, driven by institutional demand for transparent, liquid, and programmable yield instruments. Major players like BlackRock, JPMorgan, Franklin Templeton, and WisdomTree are already building tokenized portfolios and infrastructure.

Zoth is expanding its asset stack to include corporate credit, commercial loans, real estate, and private equity. It is also integrating ZeUSD into treasury management systems, lending protocols, and staking platforms. These efforts aim to provide institutions with a stable unit of account across DeFi, regardless of the underlying asset's liquidity or lock-up period.

The platform's security measures include real-time AI monitoring, independent audits, and open-sourcing parts of the stack. These measures help reduce operational overhead for institutions that need audit trails and internal review processes.

Zoth is already being used by institutional players, including hedge funds and DAOs. Hedge funds are deploying tokenized Treasury bills through the platform to earn dual yield, while DAOs are converting idle USDC into ZeUSD to access yield strategies without giving up liquidity.

The team behind Zoth includes Pritam Dutta, co-founder and CEO with extensive experience in fintech and Web3, and Koushik Bhargav Muthe, co-founder and CTO with a background in blockchain research and protocol development.

As DAOs, funds, and asset managers rethink how they allocate capital on-chain, Zoth offers the infrastructure to do it with accountability and scale. The next wave of yield in DeFi will come from real-world assets, and Zoth is positioned to lead this transformation.

References:
[1] https://finance.yahoo.com/news/real-world-assets-onchain-next-181645398.html