Folks Finance Set to Launch FOLKS Token on November 6, 2025, Following $3.2M Series A Funding

Executive Summary

Folks Finance, a prominent multi-chain decentralized finance (DeFi) protocol, is preparing for the launch of its native governance and utility token, FOLKS, on November 6th, 2025. This development follows a successful $3.2 million Series A funding round, led by Borderless Capital, which contributed to a total funding of $6.2 million and valued the company at $75 million. The launch of FOLKS and the concurrent expansion into a regulated CeDeFi mobile application underscore the protocol's strategic initiatives to deepen its market presence and enhance liquidity solutions across the Web3 ecosystem.

The Event in Detail

Folks Finance announced the impending launch of its native FOLKS token, slated for November 6th, 2025. The token will leverage the Wormhole NTT crosschain standard, positioning it as a core component for protocol governance and long-term incentive frameworks. In anticipation of this launch, Folks Finance secured $3.2 million in an oversubscribed Series A funding round. This investment was led by Borderless Capital, with additional contributions from SOVO Ventures, Mapleblock, and Algorand Ventures. This capital injection brings the company's total funding to $6.2 million, following an earlier seed round in 2022, and establishes a post-money valuation of $75 million.

Financial Mechanics and Token Utility

The FOLKS token is designed with a total supply of 50 million units and will serve as both a governance and utility token within the Folks Finance ecosystem. Its functionalities include enabling users to utilize FOLKS as collateral for borrowing, earning rewards through participation in various platform features, and engaging in governance decisions to adjust smart contract parameters. Furthermore, the token can be staked or locked in smart contracts, both within Folks Finance and on other DeFi platforms, to accrue additional FOLKS or other digital assets, and to guarantee specific benefits within the protocol. Since its mainnet launch in 2022, Folks Finance has demonstrated substantial growth, recording a peak Total Value Locked (TVL) of $220 million and serving over 15,000 active monthly wallets across multiple blockchains.

Business Strategy and Market Positioning

Folks Finance operates as a cross-chain lending protocol supported by prominent entities such as Coinbase Ventures, Jump, ParaFi, OKX Ventures, and Borderless Capital. The token launch marks a significant milestone in the company's development, as articulated by CEO Benedetto Biondi. A key strategic initiative is the forthcoming Folks Mobile app, developed in partnership with a licensed Virtual Asset Service Provider (VASP) based in Georgia. This application represents a move into the CeDeFi (Centralized Decentralized Finance) space, integrating open, permissionless DeFi rails with compliance-ready services, including Know Your Customer (KYC) procedures, regulated custody solutions, and debit card functionalities. The app is designed to offer liquidity staking, swaps, lending, and an AI-driven routing system, along with a debit card enabling crypto spending via stablecoin-backed loans. The FOLKS token will be integrated into the app, providing exclusive user benefits. This strategic direction aims to address the fragmentation of liquidity across isolated ecosystems within the DeFi landscape, as noted by Amit Mehra, partner at Borderless Capital.

Broader Market Implications

The launch of the FOLKS token and Folks Finance's expansion into regulated CeDeFi through its mobile application carry broader implications for the Web3 ecosystem. The protocol's emphasis on cross-chain functionality and compliance-ready services may set a precedent for corporate adoption of decentralized finance solutions, potentially influencing regulatory frameworks and fostering greater institutional engagement. The successful Series A funding round and the backing from established venture capital firms underscore growing investor confidence in projects that aim to bridge the gap between traditional finance and decentralized technologies, while addressing critical issues such such as liquidity fragmentation and regulatory compliance. This trajectory could contribute to increased user engagement, enhanced liquidity provision, and a more integrated digital asset landscape.