We interviewed 300 tradfi professionals – institutions, roles and spanning regions – and the verdict was almost unanimous: today’s financial system is buried by the ineffectiveness that stifle economic growth and drainage of resources. The issues are high and the cost of inaction is higher. Many consider DEFI as a transformative solution – a means of cutting fat and unlocking real value. Our investigation report argues: DEFI is not only an alternative; It is the future tradfi that should kiss. And it starts with support policies that allow it to prosper.
The full report is accessible here.
Find 1: more than two thirds of Tradfi companies are currently considering Defi
The current technological infrastructure and the systems used by tradfi are at high intensity of labor and require a significant amount of manual intervention. As a result, Tradfi companies have explored the border. They actively seek ways to take advantage of technology to reduce costs, improve risk management and rationalize operational efficiency. Crypto is increasingly anchored in their strategies:
- Tradfi companies consider DEFI as a solution to operational efficiency problems.
- Almost nine out of ten actively invest or are looking for ways to take advantage of the advantages of public blockchains.
Tradfi adopts his own disruption because he knows how much he is gaining in the transition to an infrastructure powered by Defi.
Find 2. Tradfi companies think that it is inevitable that DEFI is ultimately important for most of the main companies.
The data clearly show that Tradfi thinks that DEFI will ultimately be of crucial importance for their main products and their emergency services. All of this is downstream of Tradfi’s conviction that Defi will bring real improvements to the financial system.
We have traveled a long path of skeptics, saying that DEFI will never be relevant outside the crypto. Now Tradfi thinks that DEFI is not only inevitability but an opportunity.
Find 3. Tradfi rejects the idea that private blockchains are as precious as public blockchains without authorization.
Earlier last year, we published research showing that central banks abandoned owner blockchains and was increasingly considering open source software and public networks. Now, our survey data show that most of the Tradfi community believes that public blockchains without authorization are essential to take advantage of the advantages of things such as intelligent contracts and tokenization.
It is extremely important that such systems remain protected, and there must be solid incentives to develop and maintain open public infrastructure.
Find 4. Today, Tradfi is most interested in stablecoins, tokenized assets and Dex.
We see the most interest of tradfi in stablescoins, tokenized assets and decentralized exchanges (DEX), which is in correlation with the increase in onchain volumes in these verticals.
These three “pillars” are necessary to turbocharger markets, because we now have (1) an asset of payment, (2) a generalized way of representing other assets, and (3) extensible protocols which can be used in a reinforced manner to carry out financial transactions.
Over the next few years, we expect these graphs to continue to go up and right.
Finding 5. The biggest front wind preventing Defi from unlocking real short -term economic efficiency is the regulatory environment. The decision -makers have a generational opportunity to accelerate.
Tradfi understands both that DEFI is inevitable and that it represents an improvement compared to most of their current systems. In this way, they share the same basic view as the crypto, which fought to protect the open challenge systems so that this innovation is not cut before it reaches the complete flower. The main obstacle to Tradfi adopting the crypto is not the need for a more robust infrastructure or the lack of public services, but that many banking and market regulators block companies, banks, benches and transmission funds, access to DEFI.
The moment of vigilant patience ended. We are now withdrawn from four years from Defi Summer and have experienced a multitude of market events in the world and in crypto that have shown the anti-Fragility of Defi. It is time for regulators to start opening the strikers who separated Tradfi from Defi and starting to allow Tradfi companies to adopt the possibility of this innovative technology.
