In a significant move towards fostering a safe and open environment for supervised entities in the decentralized finance (DeFi) space, the Bank of Italy’s Milano Hub innovation center is set to support a pioneering project. Spearheaded by Cetif Advisory, this initiative aims to explore and research the potential of a security token ecosystem for institutional DeFi.
The project, in collaboration with Polygon Labs, Fireblocks, and other prominent organizations, intends to extend the analysis of security tokens on secondary markets. While emphasizing that the project has no “commercialization purpose,” the General Manager of Cetif Advisory, Imanuel Baharier, stressed the importance of creating the conditions for DeFi to operate securely and transparently for supervised entities.
We believe it is vitally important to create the conditions for DeFi to become a safe and open operating environment for supervised entities.
As part of the undertaking, Cetif Advisory will further develop its Lionity platform, renowned as an “institutional grade automated market maker.” The platform aims to enable institutional market participants to navigate the DeFi landscape while adhering to regulatory guidelines, bringing greater credibility to the DeFi sector.
Advancing Institutional DeFi With Regulatory Compliance
The project enjoys the collaboration of Italian banks, asset management companies, and 10 other esteemed financial institutions. Their involvement signals growing interest and recognition of the potential benefits that blockchain technology and tokenization can bring to the financial sector.
The Cetif Advisory project was chosen during Milano Hub’s second call for proposals, which shows that it has the potential to impact the fintech industry significantly. The project will receive six months of support from Milano Hub, including expert advice and extensive regulatory research.
Tokenized securities have emerged as a disruptive force in the blockchain technology arena. With Citi Global Perspectives & Solutions projecting a tokenized securities market worth up to $5 trillion by 2030, the potential of this technology cannot be understated. Private equity, venture capital, and real estate will lead the tokenization charge.
Propelling DeFi and Tokenization Utilization
The Cetif Advisory project’s collaborative efforts with various industry stakeholders may play a pivotal role in advancing the DeFi ecosystem and accelerating the adoption of tokenization. This ambitious endeavor underscores the Bank of Italy’s keen interest in embracing the transformative potential of blockchain technology and tokenized securities.
Financial institutions and banks can explore tokenized digital assets by integrating their systems with the Lionity platform. They can also execute secure transactions within the confines of the financial regulatory framework, showcasing a proactive approach to adopting cutting-edge technologies.
With the support of the Bank of Italy’s Milano Hub, the Cetif Advisory project, backed by Polygon and other partners, is poised to drive innovation in security tokens and institutional DeFi. As the financial world adapts to the changing tides of technology, initiatives like this pave the way for a promising future in decentralized finance.
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