Projective Finance has launched a $7 million lending pool by tokenizing municipal solar loans on the Avalanche blockchain.
This initiative leverages tokenization to broaden investor access within decentralized finance (DeFi) to renewable energy assets originating in Illinois. It specifically targets funding bottlenecks that have left many US solar projects without capital due to inefficiencies in traditional lending.
Investors gain exposure to government-backed, low-risk renewable energy assets through this tokenized model. Projective Finance emphasizes the maintenance of strict credit standards throughout the process.
The launch is positioned within the expanding trend of real-world asset (RWA) tokenization observed in the market. The tokenization approach enhances transparency and liquidity for DeFi participants.
Furthermore, it facilitates capital flows towards smaller-scale renewable energy initiatives that were previously often excluded from funding.