Cointelegraph Consulting: Research outlines how DeFi can merge with traditional finance

New research finds that controlled financial institutions can port with decentralized finance via digital asset marketplaces.
Whilst public adoption of crypto assets is increasing, the worldwide regulations continue to advance and reevaluate decentralized technologies as a suitable infrastructure to the dematerialisation of securities. In Luxembourg, the nation that is next in the world in terms of assets under management, the country’s regulator adopted a statement which explicitly recognised the possibility of using distributed ledger technology to the dematerialisation of securities. The regulation is moving fast everywhere throughout Europe: Tokenized securities currently fall under the very exact regulations and rules as traditional financial instruments in a number of other European countries including France, Switzerland, Germany, Italy, the Netherlands, Romania, Spain and the UK.Read the ebook to discover ways to be part of this emerging digital asset industry. Download the full report here.What next for the business? Due to the boost in people adoption and also the favourable regulatory environment, require from the financial industry to access digital networks is on the upswing. Thus far, banks have digitized the retail industry although much has evolved in capital markets. The digitization of this business is currently possible through the blockchain, a infrastructure currently broadly recognized by the biggest governments worldwide for financial instruments. Money and asset managers are now able to upgrade their supply channels by establishing Digital Asset Marketplace (DAM) and connecting to others through principal networks. DAMs can aid their clients find new opportunities, handle their investments and perhaps even open secondary market chances. In this ebook, business participants describe how funds market players can benefit from blockchain by launching a DAM and maximizing the monetization of the investor base.Financial institutions are starting to publicly embrace and adopt the technology. Thus far they have started, as anticipated, with crypto-assets. Once they start to trust the technologies and it becomes embedded within their own portfolios, it is going to mean one thing: curiosity will summit and these institutions will realise that the operational advantages of decentralized technology.Driven by increased confidence in the technology, and pressured by DeFi replacing numerous traditional banking functions, institutions will start to learn that the technology will solve long-standing and deeply entrenched industry issues, especially in the opaque and extremely illiquid private markets.Digital Asset Marketplaces, i.e. secondary and primary places where investors fulfill, is going to be the driver for this according to the study.
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