- A consortium of companies backed by the Italian central bank are developing an ecosystem for traditional banks to enter the DeFi industry.
- The institutional DeFi for security token ecosystem will be developed in partnership with Polygon Labs and Fireblocks.
- MATIC price eyes recovery, the Ethereum scaling token is trading at $0.7128 at the time of writing.
Cetif Advisory, a consortium of companies backed by Italy’s central bank, is exploring the use of Ethereum scaling solution Polygon and crypto custodian Fireblocks to help traditional finance move to the DeFi ecosystem.
The tokenization of real-world assets and development of other innovative ideas in DeFi have garnered the attention of traditional financial institutions. Banks and firms are looking to dabble in security tokens and execute transactions using DeFi rails in a regulated manner.
Bank of Italy opens doors to DeFi innovation with Polygon and Fireblocks
Ethereum scaling solution Polygon was chosen by Bank of Italy’s innovation hub to dabble in decentralized finance projects. Polygon Labs, an Ethereum scaling solution and the crypto custodian Fireblocks will help traditional institutions experiment with tokenization of assets and relevant DeFi projects.
The Italian central bank’s center for developing innovative ideas in finance, Milano Hub has taken up the responsibility to develop an, “Institutional DeFi for Security Token ecosystem” within a six month timeframe.
The institution’s plan is to help traditional financial firms experiment with security tokens and execute transactions using DeFi rails in a safe, regulated manner. Tokenization of real world assets is an emerging trend in the crypto ecosystem and Italy is taking steps in the direction to bridge the gap between traditional finance and DeFi through its partnerships with Polygon Labs and crypto custodian Fireblocks.
Polygon’s native token MATIC is trading at $0.7128 at the time of writing and a boost in utility and partnerships of the Ethereum scaling blockchain is expected to catalyze a recovery in the token.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.