Banks and exchanges not only recognize DeFi. They clearly know that this is the future

Banks and exchanges not only recognize DeFi. They clearly know that this is the future


Traditional financial institutions are not interested in a remote peer-to-peer community that has consolidated around breakthrough crypto assets. What they really wanted was their own version of the blockchain technology they are built on. Why? Mainly so that they can use solutions based on a distributed registry to conduct their own internal operations, such as back-office and reporting in the case of banks, as well as to get maximum efficiency on outsourcing projects for large consulting companies.

These were innovative days, and only some examples of blockchain-based solutions were implemented by banks. But now a whole new dimension is in the field of view of the main Wall Street exchanges: DeFi.

DeFi, which is an abbreviation of Decentralized Finance, represents the entire topography and structure of the cryptocurrency, not just the blockchain registry, and, according to NASDAQ, one of the world’s most respected platforms for listing publicly traded companies, “are ready to disrupt the future of FinTech.”

Today, NASDAQ clarified its position. From the point of view of Adeline Zhou from Chainlink, a “decentralized Wall Street” has appeared over the past year, in which users have invested more than $ 50 billion in assets in applications that copy traditional financial instruments. But these are products based on a decentralized blockchain infrastructure.

According to experts, the near future is that a whole new generation of financial market participants uses DeFi in all areas of their requirements for investing, trading, lending, savings and loans. And all this without the permission of companies whose interests may not always coincide with the interests of their customers.

In fact, many startups that finance business today in Europe and the United States provide business loans through FinTech-focused crowdfunders, and all through DeFi solutions.

It is only a matter of time before DeFi really undermines the traditional banking sector

The propaganda of DeFi is absolutely clear, as large organizations are beginning to agree that any skepticism about DeFi arises as a result of a large-scale misunderstanding of the attractiveness of this technology to the general public. NASDAQ believes that many fintech companies now know that they can bypass banks, offering a better user experience, and giving users more control over their finances.

The formation of DeFi is clearly on the agenda even in large organizations such as Wall Street stock exchanges, and on this occasion, the publication of NASDAQ by Ms. Zhou encourages FinTechs to carefully study which popular applications people use to borrow money.

Some analysts in the US have even suggested that during the volatility in the cryptocurrency markets over the past few weeks, central banks have been given the opportunity to start controlling the world of DeFi. In their opinion, it is wrong that one May day can destroy everything, and have serious long-term consequences even for those who are not concerned about such events.

However, it was not so easy, and no bank has actually managed to curb the growing need to adapt to a world in which DeFi is an integral part of today’s structure of financial markets, and will be an even greater part of tomorrow.

The future has definitely arrived, and even the most resistant old financial institutions have no choice but to join them.