You’ve likely heard of decentralized finance, or DeFi. Now get ready for… institutional DeFi! Institutional DeFi refers to large institutions using DeFi protocols to tokenize real-world assets with regulatory compliance and institutional-level controls for consumer protection.
Institutional DeFi comes with a lot of advantages — including more transparency, interoperable protocols, and tokenization. But it’s also a little troubling that large institutions are adopting the methods and means of DeFi. After all, crypto and DeFi were created specifically to avoid large centralized institutions having control over everyone’s money.
In this episode of Crypto Monitor, Vin Narayanan and Allison Brickell discuss the merits and downsides of institutional DeFi — and how banks and other institutions could do this the right way.
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