A new study has shown that traditional financial firms are exploring the use of decentralized finance (DeFi) to improve their existing services and create new revenue streams.
The study, conducted by Crypto.com and BCG Platinion, was first spotted by CryptoBriefing and surveyed over 400 financial companies in various sectors, including banking, insurance, and trading. The survey was on the challenges and opportunities associated with the adoption of DeFi.
It found that there’s rising interest in the space, with 86% of respondents revealing they are already implementing or considering implementing cryptocurrency-based technologies to improve their services.
Kris Marszalek, co-founder and CEO of Crypto.com, was quoted as saying:
The research shows that DeFi’s adoption is not limited to just the blockchain industry; traditional financial institutions of all sizes are viewing DeFi not as a competitive threat but rather as a valuable instrument to delivering more decentralized, efficient financial services.
Marszalek added that this is shown in “their warming attitudes towards DeFi and its integral role in the future plans for the vast majority of them. Large billion-dollar firms were also found to be on board, some of the of respondents revealing they had a balance sheet above £10 billion ($12.8 billion). Of these, 70% either evaluated or implemented some form of DeFi into their operations.
The security of funds and regulatory hurdles were revealed to be hindering the decentralized finance space’s adoption, with 70% of respondents saying concerns surrounding fund security and fraudulent activities needing to be resolved before the space can grow, and 61% pointing to regulatory threats.
Featured image via Pixabay.