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From DeFi to TradFi - What is SOMA.finance? | SOMA.finance

A short introduction to who we are and what we do.

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Key Takeaways

  • SOMA.finance will bring a first-of-its-kind regulated framework for the trading of tokenized securities, bridging the gap between the traditional brick and mortar brokerages and the world of DeFi.
  • Features that set SOMA apart from the competition include Tokenized Equities, Crypto, DeFi Primitives, Fiat Convertible and more. 
  • SOMA.finance is globally compliant, 1:1 backed & redeemable and will enable users to trade 24/7.

All you need to know about SOMA.finance

SOMA.finance is the brain-child of the partnership between the founders of the multi-platform decentralized finance (DeFi) protocol MANTRA DAO and the broker-dealer Tritaurian Capital. The purpose of SOMA.finance is to bring regulated tokenized securities to the world of DeFi, forever changing the way the world trades financial assets. 

The realm of DeFi has seen a significant transformation over the past couple of years and is now attracting the attention of both institutional and individual investors looking to capitalize on the next major trend. 

With the introduction of regulated securities to the DeFi market, SOMA.finance is set to usher in the next evolution of decentralized finance as the mass adoption of blockchain technology unfolds in the years ahead. 

More than just a suite of permissionless DeFi tools designed to offer a host of opportunities for tokenized assets, SOMA.finance will grant its users access to a first of its kind legal and regulated framework for the trading of tokenized securities. SOMA.finance is the ideal protocol to help bridge investors from the traditional brick and mortar brokerages, to the rapidly expanding world of DeFi in a simple to use manner.  

The long, sought after goal of bringing regulated securities to DeFi will be a reality with SOMA.finance through its dedication to embracing innovation, being at the forefront of technological development, and doing both while also aligning with the global regulatory system. 

Here are some of the tools that will set SOMA apart from the competition to help make this goal a reality:

Tokenized Equities

Non-fungible token (NFT) technology has upended the outdated world of hard to manage paper stock certificates that are supposedly locked away in a vault somewhere by an opaque centralized government organization. 

Now, individuals will be able to take control of their wealth and hold one-of-a-kind digital tokens that signify ownership of a financial asset in digital wallets that only they control the access to. 

When ready to trade those assets, SOMA.finance will offer a regulated securities market where users can trade tokenized versions of assets like Apple or Tesla stock as easily as trading popular cryptocurrencies like Bitcoin or Ethereum. 

Crypto, STOs, and NFTs

The cryptocurrency market has seen an exponential growth in the decade plus since Bitcoin originally launched, and now comprises tens of thousands of projects that range from DeFi protocols to NFT and gaming tokens. 

When you add to that mix the expansive world of traditional securities which includes stocks, bonds and commodities, few platforms are capable of offering a simple user experience, let alone one that satisfies the scrutiny of financial regulators. 

On SOMA.finance, the worlds of traditional and decentralized finance will come together to offer users unrivalled access to the largest selection of cryptocurrencies, NFTs and traditional securities in one streamlined decentralized exchange (DEX). 

24/7 Trading

One of the biggest advantages the world of cryptocurrency has had over traditional finance is the 24/7 nature of a market that never sleeps. 

Now, SOMA will offer the ability to instantly trade stocks at any time of the day and any day of the week, even on weekends and holidays, with the same security and ease as trading tokens in the crypto market. 

And with the borderless nature that DeFi provides, SOMA will open access for assets that were once limited to smaller separate markets to a never-closing global marketplace of investors from all walks of life eager to gain exposure to the top brands and assets. 

Globally Compliant

As part of its effort to offer regulatory compliant access to an unprecedented number of tokenized assets and decentralized finance, SOMA.finance will adhere to global AML and KYC requirements for all users of its platform. 

It is through this adherence to regulations that while much of the crypto industry operates on a “Wild West” mentality, SOMA is dedicated to bridging the gap between the technological frontier and the existing legal framework as a way to help protect customers and the larger financial industry. By maintaining regulatory compliance, trading tokenized securities with SOMA will open doors to new possibilities for millions of people around the world.

1:1 Backed & Redeemable

Rehypothecation has been the dirty little secret of not just traditional financial markets but also the more opaque side of the crypto market for quite some time. This makes it virtually impossible to know who actually owns what with any reasonable amount of confidence. 

Users of SOMA.finance will be able to rest assured that each asset they interact with on the platform is backed 1 for 1 with the genuine article held in secure custody. 

All tokenized securities traded through SOMA are 100% backed by their underlying assets and each crypto token traded on the exchange can be withdrawn to a personal wallet at any time. This isn't a market for synthetic assets, derivatives or contracts for difference – it's only the real deal on SOMA.finance.   

DeFi to TradFi Bridge

At this point, there’s no denying that blockchain technology and DeFi are changing the way the financial world does business. Unfortunately due to its wild-west nature and lack of regulation, institutional investors are barred from many of the opportunities available in DeFi.

SOMA.finance will change this through the creation of a regulatory compliant bridge between the nascent world of DeFi and the established realm of traditional finance (TradFi). 

SOMA’s “walled garden” will ensure that all interactions on the platform are conducted between verified and KYCed counter-parties, allowing institutional investors who were once held back by regulatory uncertainty get their first taste of what DeFi has to offer. 

DeFi Primitives

The evolution of DeFi over the past several years has given rise to transformative financial primitives such as automated market makers (AMM) and yield farming. These primitives have led to novel and democratic ways to engage with financial assets without the need for fee taking intermediaries designed to drain accounts. 

SOMA.finance will combine the best of what has emerged from DeFi to offer the most advanced trading and yield farming experience for both crypto assets and regulated tokenized securities, helping to advance the DeFi space as a whole and bring a new level of legitimacy to the ecosystem. 

Fiat Convertible 

Fiat on and off-ramps are perhaps the most difficult thing to come by in the world of DeFi as they offer a focal point for regulators to crack down on. 

Luckily for users of SOMA.finance, the regulatory compliant nature of the platform and its MTL licensing will make it easy to onboard fiat into the exchange or cash out in the local currency of choice in a quick and efficient manner. 

SOMA Prime Brokerage

Being able to offer regulatory compliant access to digital securities and crypto assets also opens the door for SOMA to offer Prime Brokerage services to institutional clients on the platform. 

The range of services offered on many DeFi protocols today such as lending, borrowing, the ability to provide liquidity and yield farming are examples of services that could fall under the Prime Brokerage status, but none offer these services in a legally compliant framework. 

SOMA.finance will change that and brings all the possibilities of DeFi to institutional investors as a way to help them hedge their investments in the crypto industry and maximize their potential to generate a return.

IMPORTANT INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the author and the comments, opinions and analyses are rendered as of the publication date and may change without notice. There is no guarantee that any forecasts or predictions made will come to pass. The information provided in this material is not intended as a complete analysis of all material facts or circumstances regarding any country, region or market. All investments involve risks, including possible loss of principal.

Risk management does not imply elimination of risks, and not all investments are suitable for all investors.The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by SOMA.finance to be reliable, are not necessarily all inclusive and are not guaranteed as to accuracy. Data from third party sources has not independently verified, validated or audited. SOMA.finance accepts no liability whatsoever for any loss arising from use of this information; reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user. ​

Any products, services and information in this material may not be available in all jurisdictions and are offered local laws and regulation permit. Please consult your own financial professional or legal advisor for further information on availability of products and services in your jurisdiction. Please also see the disclaimer which is found at the bottom of this website under the heading “Important Disclosures”.