Folks Finance, a leading cross-chain decentralized finance (DeFi) protocol, has announced a new partnership with a licensed Virtual Asset Service Provider (VASP) based in Georgia. The collaboration will launch a parallel, independently regulated CeDeFi mobile app for eligible retail and institutional users, eventually adding compliance-ready features such as identity verification (KYC) digital asset custody and debit cards with on-chain collateral.
The new licensed app will operate independently from the Folks Finance protocol, scaling over time with compliance-ready services such as KYC, custody, and debit cards, while selectively integrating open, permissionless DeFi rails where appropriate.
“Our mission has always been — and remains — practical openness. We want to bring the best of DeFi to people, without asking them to ignore compliance or risk,” said Benedetto Biondi, Founder of Folks Finance. “By operating a separate app under a licensed VASP, certain KYC-enabled features – like custody, debit cards, and perhaps in the future even limited RWA access – become accessible to users, while responsibly connecting users to permissionless DeFi rails where it makes sense to.”
The collaboration represents one of the earliest attempts by a DeFi protocol to work alongside a licensed VASP on a parallel regulated app, designed to balance user protections with decentralization. The goal is to clear a path for users to enjoy built-in safeguards and a familiar user experience (UX), while retaining many operational benefits of decentralization. These protections include compliance-ready measures such as identity verification (KYC/AML), licensed digital asset custody, transaction monitoring, and debit cards backed by on-chain collateral. Together, they create a regulated environment for eligible retail and institutional users, without cutting off access to open, permissionless DeFi rails where appropriate.
Biondi continued: “Some users and institutions require services with compliance and safeguards, while others want transparent settlement and programmable DeFi. This partnership balances both needs, offering regulated features through the licensed app, while maintaining access to the permissionless protocol.”
The upcoming FOLKS utility token, issued on the main protocol and accessible via decentralized smart contracts, is planned to also integrate with the regulated app, on top of being the lifeblood of the main platform. This will unlock usage-based advantages, perks, and features for users, while maintaining separation between the protocol and the app.
