Partner Spotlight: Zoth - Financial Connectivity in On-chain Finance

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Partner Spotlight: Zoth - Financial Connectivity in On-chain Finance

April 18 2024

by Victoria Calmon

Real-World Assets (RWAs) refer to tangible assets such as real estate, commodities, or securities that exist outside the digital realm. These assets have traditionally been confined within closed financial systems, inaccessible to many due to various barriers such as centralization, high investment thresholds and reliance on intermediaries. However, this paradigm is shifting with the emergence of platforms like Zoth. By tokenizing RWAs and making them accessible on blockchain networks, Zoth is facilitating new opportunities for users to access traditionally exclusive assets.

About Zoth

Zoth operates as an ecosystem that facilitates liquidity flow between traditional finance and on-chain finance, accelerating the influx of assets and capital across these sectors. At its core, Zoth-Fi represents an institutional-grade fixed income marketplace, offering investors access to top-tier fixed income assets through stablecoins. With a diverse range of asset classes including trade finance receivables, sovereign government bonds, t-bills and corporate credits, Zoth aims to blur the lines between traditional and on-chain finance, unlocking new opportunities for enhanced liquidity and efficient tokenization mechanisms for RWAs.

Zoth’s Mission and Vision

Zoth envisions a future where the boundaries between traditional finance and on-chain finance are dissolved, enabling widespread access to sustainable RWAs and fostering global financial inclusion. The mission of Zoth is to accelerate the flow of capital into sustainable RWAs, making finance fairer and more accessible on a global scale.

Why Partner with Mento Labs?

Zoth and Mento Labs’ collaboration signifies a concerted effort to bolster financial accessibility and stability. By leveraging the Mento decentralized stablecoin, cUSD (Celo Dollar), Zoth expands its range of use cases. It offers users protection against currency devaluation and fosters financial empowerment, especially in regions impacted by unstable currencies through the provision of stable currency yield. Mento enables the cUSD to gain significant utility by being backed by yield generated from secured real-world assets.

Partnership Testimonials

"At Mento Labs, we recognize the potential of our partnership with Zoth in extending the reach of decentralized finance to underserved regions. This partnership enables us to leverage Zoth’s expertise in bringing real-world assets on-chain, further enriching the utility of the cUSD stablecoin on the Mento Platform," said Markus Franke, CEO at Mento Labs. "Mento Labs is thrilled to build robust infrastructure that supports financial inclusion and innovation in the DeFi space."

"At Zoth, we believe in the power of collaboration to drive meaningful change in the financial landscape. By integrating Mento Labs' cUSD stablecoin into our ecosystem, we empower users with access to secure and sustainable financial products, fostering economic growth and stability," commented Pritam Dutta, Founder and CEO at Zoth.

Zoth’s Solutions

Zoth offers a comprehensive suite of solutions designed to streamline the integration of real-world assets into decentralized ecosystems:

Tokenization Infrastructure: Zoth’s proprietary tokenization infrastructure brings traditional finance asset classes on-chain, enabling stablecoin platforms like Mento to gain exposure to yield-generating tokenized assets.

Secure and Sustainable Yield: Through the Zoth-FI, an institutional-grade fixed income marketplace, users gain access to secure and sustainable fixed income opportunities, providing stability and yield to their holdings.

Frictionless Asset Transfer: Zoth facilitates the seamless transfer of assets between traditional finance and on-chain finance, accelerating the flow of capital into RWAs.

Mento Stables in Action

Mento stablecoins, particularly cUSD, play a crucial role in Zoth’s ecosystem, providing users with secure and stable yield opportunities. These stablecoins enable users to participate confidently in the digital economy while mitigating currency risks associated with volatile markets.

Measurable Benefits

The impact of Zoth’s solutions powered by Mento stable cUSD is tangible, with measurable benefits including:

Increased Accessibility: Zoth’s solutions has originated $50 M worth of loans and contracted $7 M for the investors, providing them with access to secure and sustainable financial products.

Enhanced Stability: Users benefit from stable and reliable yield opportunities, shielding them against currency devaluation and economic instability.

Financial Inclusion: Through the Zoth and Mento ecosystems, underserved communities gain access to traditional finance asset classes and stable currency yield, fostering economic growth and financial inclusion.

Next Steps

Looking ahead, Zoth aims to explore additional use cases with Mento Labs, focusing on areas such as real-world assets tokenization, savings, and staking using cUSD. These efforts underscore the commitment of both partners to drive innovation in the DeFi space and boost the adoption of stablecoins across the globe, further democratizing access to financial opportunities that have been historically confined within centralized financial systems.