Crypto

How Public Blockchains Will Catalyze Institutional DeFi Adoption

Emerging regulatory frameworks, such as the EU’s Markets in Crypto-Assets (MiCA) and Singapore’s Payment Services Act (PSA), are providing much-needed clarity in the world of cryptocurrency and blockchain technology. These regulations are helping to establish a more secure and compliant environment for institutional investors.

Historically, private blockchains have been the preferred choice for institutions due to their security and compliance features. However, these closed systems have limitations, such as restricted access and limited participation, which can lead to low liquidity, inefficient price discovery, and increased volatility for stable assets.

With the increasing regulatory clarity and support for decentralized blockchains, such as Ethereum and Solana, more institutions are likely to shift towards these open and transparent networks. Decentralized blockchains offer greater accessibility, liquidity, and efficiency, making them a more attractive option for institutional finance.

As the regulatory landscape continues to evolve and mature, decentralized blockchains are poised to become the favored path for institutions looking to engage with the burgeoning world of cryptocurrency and blockchain technology.

Carmen Brooke Martin

Finance Analyst Hello, my name is Carmen Brooke Martin and I am an expert finance journalist with a master's degree from New York University in Business and Economics. I'm passionate about helping startups spread the word, discover and promote great projects in the crypto and fintech industry. What I am working on is to provide basic cryptocurrency education and benefits to the crypto community through video tutorials and written content. As a business developer, I help crypto projects structure and create a whitepaper that can stir investors' interest, advice on marketing strategies and promotions.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button