Ethereum DeFi Platform Ether.fi Adds Tokenized Stocks and Portfolio-Backed Loans

Ether.fi, a decentralized finance platform known for Ethereum staking, is adding tokenized asset trading, portfolio-backed loans, and fiat accounts to its self-custodial app.

Announced on Thursday, Ether.fi said users can now trade tokenized stocks, metals, and crypto assets through its app. An integrated market using decentralized lending protocol Aave on Optimism, an Ethereum scaling network, also lets users lend assets, borrow against their portfolios without selling their holdings, and send or spend the proceeds. New fiat accounts support deposits and withdrawals worldwide.

“Initially we’re supporting existing assets and select tokenized stocks and gold,” Ether.fi founder and CEO Mike Silagadze told Decrypt. Those existing assets include Ethereum, Bitcoin, Hyperliqud, and ETHFI, Ether.fi’s native governance token, said Silagadze. “Quickly we’ll start adding additional assets as collateral.”

According to Ether.fi, fiat accounts will be available to users who have completed the identity checks required for its payment card. Deposit and withdrawal speeds will vary.

Ether.fi is also introducing automated buybacks of ETHFI and offering 3% cash back on card purchases. The company says it has more than 500,000 members and a $2 billion annual transaction run rate.

Silagadze said portfolio-backed loans and tokenized real-world assets, or RWAs, could attract people who do not already use decentralized finance.

“I think being able to borrow against the whole portfolio, and being able to loop RWAs is going to be popular,” he said. “Also getting cashback on trades and borrows is going to create some buzz, I think.”

The new features are available to new and existing Ether.fi users, although tokenized stock and metals trading is unavailable in the United States and certain other markets.

Silagadze said the expanded platform is intended to serve as an alternative to traditional banks.

“With ether.fi, we’re bridging the gap between decentralized finance and everyday financial needs,” Silagadze said. “Our goal is to replace the traditional bank for most users and give them tools and benefits that were previously available only to institutions and high-net-worth individuals. That is the power of DeFi and self-custody.”