TrueFi: The Rise of the Decentralized Platform for Centralized Lending

When Rafael Cosman founded TrustToken in 2017, his team created one of the first US dollar-backed stablecoins that have since helped define the role of stablecoins in the crypto space. Today, TRU USD (TUSD) has a 1.2 billion market cap.

TrustToken has created TrueFi, a decentralized lending platform for centralized institutional lending that is governed by holders of TRU. As overseers of TrueFi, Rafael and his team at TrustToken are bridging the space between DeFi and CeFi.

When he was a guest on the BlockSolid podcast with the host and CEO of SolidBlock Yael Tamar, Rafael spoke about the exciting challenges of inhabiting that space.

“We’ve always thought that the most interesting parts of blockchain are in that bridge between Defi and CeFi,” Rafael explained.

The protocols of the platform are decentralized. “Many of us have money in banks, and these banks have almost zero transparency. We don’t know what’s happening to our money,” Rafael opined, “and it’s sitting in an account earning almost nothing.”

DeFi, on the other hand, is transparent. The books & records of every transaction are open for all to read.

Listen to this fascinating conversation as Rafael discusses how to evaluate borrowers, set rates and terms for loans, and explains how TrueFi creates collateral-free blockchain lending that maximizes capital efficiency for borrowers and earning rates for lenders.

Miriam Green

An award winning poet and author of The Lost Kitchen: Reflections and Recipes from an Alzheimer’s Caregiver (Black Opal Books, 2019), Miriam transitioned post-COVID into content writing. Miriam’s love of words has served her well. As a young writer she edited two newsletters at the Federal Reserve Board under Chairman Alan Greenspan. Miriam writes a blog at The Lost Kitchen, describing the hardships of caring for a parent with Alzheimer’s and featuring related recipes. She is a 30-year resident of Israel, and a mother of three.

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