2021 will be remembered as the year that ushered in the DeFi App, a new type of financial-based application utilizing the Blockchain Terminal’s (BCT) blockchain technology platform.
Prior to 2019, ICO’s were the significant method of implementing cryptocurrencies into the financial marketplace. This trend soon moved toward blockchain-based cryptocurrency in 2020. DeFi, or decentralized finance, is the next phase of digital finance and a global trend is already emerging creating a demand for DeFi related companies.
Financial regulators consider investment in an unregulated environment to be risky, but innovations in blockchain technology have created an environment that enables the financial world to embrace change. DeFi was officially recognized by the US Securities and Exchange Commission (SEC), which approved the Ethereum-based fund, Arca in July last year. This movement of financial authorities toward the adoption of DeFi is significant, and further points to the potential global adoption of DeFi.
By utilizing the BCT platform, the DeFi App will benefit from a stable and proven system that provides the highest levels of user security via BCT’s blockchain technology. 75 of the world’s largest banks are currently using the same technology to test out the Interbank Information Network led by JP Morgan, Royal Bank of Canada, and ANZ to increase financial settlement times.
Currently, there is a surge of investment into DeFi tokens, even though there is no real value yet associated with them. This is a risky investment, but the promise of a free, decentralized financial system through the DeFi market of virtual currency is prompting both institutions and individuals to lead this shift toward this financial marketplace.
In 2020, we saw the emergence of DeFi companies such as MakerDao, Compound, AAVE, Uniswap, Curve, and Balancer. In 2021, the DeFi App became yet another notable company to implement DeFi into their platform. Originally promoted through an ICO in 2018, the DeFi App implements a new version of the Bitcoin wallet that will be the first UI platform compatible with DeFi.
The DeFi App incorporates the fast payment and transmission speeds possible on BCT’s blockchain technology, and as new markets develop, they will require expanded financial payment capabilities such as those offered by the DeFi Application.
The potential of the DeFi marketplace is unlimited, especially in the asset management sector. Grayscale, the world’s largest crypto investment fund, managed $4.4 billion worth of Bitcoin assets in the first half of 2020 alone. Even as the Covid-19 outbreak stifled economies around the world, the DeFi marketplace has expanded and it is apparent that global financial markets are changing their outlooks toward the adoption of DeFi.
FFE Trust specializes in identifying investment opportunities.