Crypto Credits
2 min readMay 5, 2022

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DeFi and Web3 for Organizations Decentralized finance? DeFi? refers to the shift from traditional, centralized financial systems to peer-to-peer finance enabled by the Ethereum blockchain. In the past eighteen months, we’ve seen significant traction from decentralized versions of lending and borrowing platforms, prediction markets, margin trading, payments products, insurance, and more. Notable traction has also been evident across entirely new forms of investment, such as staking and yield farming. The DeFi ecosystem has attracted more than 4M users as well as some of the world?s leading financial institutions, funds, exchanges, and family offices. Since late 2020, we have seen a Cambrian explosion of innovation in the DeFi ecosystem. The entire financial system is being rebuilt from first principles with more security, transparency and interoperability? in weeks and months rather than years and decades. With radical financial innovation and growth comes radical investment returns and opportunit y, leading to more and more institutional capital flooding into this space. The user needs of institutional finance can be mapped using the capital allocation cycle? from research, pre-trade compliance, and best execution, to monitoring, reporting and custody. Over the last 18 months, there has been an explosion in products and services in all these categories, with capital flooding in to build the necessary DeFi infrastructure. Crypto custodians, for example, have raised large rounds, taken on strategic investments, or been acquired. Compliance, trading and data analytics are attracting capital to build and scale institutional crypto access. However, it?s not only the tooling and infrastructure around DeFi that is being built. DeFi it self is also innovating to provide access to institutional finance? from permissioned lending pools that ensure only KYC?d participants, to on- chain asset management, MEV resistant best execution protocols, and decentralized identity? more and more institutional focused projects are coming to market, and more will no doubt accelerate with Layer-2 scaling. The institutional DeFi world is at an incredibly exciting moment in its adoption cycle. Larger regulated crypto funds, hedge funds, and traditional fund managers will lead the early majority. And the infrastructure is currently being built for the heavily regulated late majority. With the unparalleled innovation in DeFi also focusing on the institutional world, it is certainly only a matter of time before Institutional DeFi becomes Institutional Finance. This report will discuss the surge in institutional adoption of blockchain and digital assets, the numerous opportunities emerging in the DeFi space, and how institutions can get started accessing, investing, and participating in DeFi and Web3. This report will not include introductory DeFi explainers, beginner?s advice for retail participants, or recent ecosystem trends and analysis. For this information, please visit our DeFi knowledge base {link} Buy, Sell & Trade on the #Blockchain @ https://cryptocredits.io #NFTs #Metaverse #dApps #DeFi #Cryptocurrency

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Crypto Credits

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