Published on July 27, 2023 · Reading time 3 minutes · Created by Fyde Labs
Decentralized finance (DeFi) is a rapidly growing industry that has the potential to disrupt traditional finance. With assets locked up in DeFi growing from less than $1 billion in 2019 to more than $100 billion just two years later, it’s clear that DeFi is here to stay.
One of the key benefits of DeFi is that it is permissionless and inclusive. Anyone with a crypto wallet and an internet connection can access DeFi services, regardless of where they are. This opens up financial services to a wider audience, including those who may have been excluded from traditional finance.
DeFi also allows for greater autonomy over assets and investments. Users remain in control over their financial assets instead of a centralized institution like banks. This can provide greater security and transparency for users.
DeFi offers many compelling use cases, many of which are beyond the reach of conventional fiat-based financial systems. Common services offered by DeFi platforms include payments, loans, trades, investments, insurance, and asset management.
The adoption of DeFi by the transaction banking industry could open up new capital opportunities for larger companies and increase liquidity for SMEs. This could provide significant benefits for businesses and the economy as a whole.
DeFi and traditional finance can thrive in tandem to fund renewable energy and other pressing needs, but only with clear standards and rules. The cryptocurrency industry is in the throes of crypto winter, but there’s also an urgent need for the stewards of the global economy to explore DeFi and crypto solutions to its many problems.
In summary, traditional finance can benefit from the adoption of DeFi by reaching a wider audience, providing greater autonomy and security for users, and opening up new opportunities for businesses. It’s an exciting time for the future of finance!
At Fyde Treasury, we offer solutions for traditional finance institutions, family offices, wealth management firms, and DAOs to move over to decentralized finance (DeFi) in a smooth and effective manner. Our Fyde Treasury Protocol is the first on-chain, decentralized treasury management solution that offers crypto treasuries a holistic approach to diversification, liquidity, yield, and governance. We provide the much-needed solution for those looking to safely and effectively manage their treasury assets on-chain.
We help crypto firms and DAOs cohesively with asset diversification, liquidity optimization, yield generation, and governance maintenance. We help DAOs diversify their treasuries with minimal impact on native token prices while also reserving governance rights. This can help traditional finance institutions, family offices, wealth management firms, and DAOs make a smooth transition to DeFi by providing them with the tools and support they need to effectively manage their assets in this new financial landscape.