- DeFi is an integral part of ING’s digital asset vision.
- ING Bank releases a paper titled ‘Lessons Learned from Decentralised Finance’.
- Centralized and decentralized financial services should cooperate.
Netherlands-based ING Bank has released a paper entitled ‘Lessons Learned from Decentralised Finance’. In this paper, ING examines and highlights the pros and cons associated with the exploding decentralized finance (DeFi) space.
Notably, ING selected decentralized lending platform Aave to carry out a case study on the various characteristics of DeFi. ING says that “the best of both worlds is achieved if centralized and decentralized financial services cooperate”.
The paper states that ‘Although DeFi currently appears to be a domain on its own, we envision that centralized and decentralized financial services will converge at some stage as both have unique capabilities that are beneficial to the other’.
Interestingly, DeFi is an integral part of ING’s digital asset vision. Therefore, researching DeFi gives ING insight into what gaps may exist in the new paradigm from a micro and macro perspective.
Additionally, ING further goes on to say the borderless nature of DeFi is alluring. This is because centralized institutions spend a lot of time and money complying with multiple regulations in different jurisdictions.
Decentralized Finance Applications have taken the world by storm since their inception in 2017. DeFi is a decentralized system as its financial services operate without an intermediary.
ING blockchain lead, Herve Francois, pointed out saying,
DeFi could be more disruptive than Bitcoin to the financial sector.
Remarkably, DeFi has around $76 billion in assets locked up on Ethereum alone. Thus, ING Bank has shown itself to be a pioneer in the cryptocurrency space, leading work among a cohort of banks on an institutional-grade custody solution and also anti-money laundering (AML) measures for digital assets.