How long will it take for big banks to join DeFi?

in Steeming Community4 years ago

Nitin Gaur, director of financial services and digital assets at IBM, said that from the firm they are encouraging financial institutions to capitalize on the decentralized finance (DeFi) movement. Not adapting to new technologies could, according to Gaur, be counterproductive for their business models.

“I think financial institutions should understand it because it has the potential to eventually take over and diminish the business elements of existing business models. And that is one of the reasons why a bank should do it, "Gaur said in dialogue with Cointelegraph.

IBM, one of the largest technology companies in the world, expects an entry into the ecosystem by the great whites in the coming months. In particular, the author of "Blockchain for Business" assured that investment banks will be the great precursors of DeFi in traditional finance.

However, Gaur remarked that the knowledge of DeFi is not as widespread as it is believed, and many institutions will still have to go through its learning stage.

The bank will seek to establish ties between institutions, promoting “product innovation”. In that sense, emphasizing the cooperation between institutions, and had good comments on the recent arrival of Mathew McDermott to the area of ​​digital assets of Goldman Sachs.

Just a few days ago, the group led by McDermott in one of the world's largest investment and securities banking groups, announced that it is planning to launch its own cryptocurrency based on blockchain technology. According to a recent publication in Forbes magazine, the group is working on an initiative similar to that of JP Morgan.

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