The Bank of Italy's Milano Hub has partnered with Cetif Advisory, a spinoff of the Cetif Research Centre at the Università Cattolica del Sacro Cuore in Milan, to pave the way for a more secure and accessible decentralized finance (DeFi) landscape. This unique venture is aiming to conduct in-depth research on the ecosystem of security tokens for institutional DeFi.
Despite not aiming for direct commercialization, the project aims to broaden the understanding of security tokens in secondary markets. A security token, simply put, is a digital piece of ownership for tangible assets. This initiative emphasizes on the necessity of safe and open operating conditions for DeFi, according to Imanuel Baharier, Cetif Advisory's general manager.
The initiative will endeavor to integrate institutional market players into the DeFi setting, ensuring regulatory compliance in the process. It's a leap forward for the Lionity platform by Cetif Advisory, described as an "institutional-grade automated market maker."
For this venture, Cetif Advisory joins hands with Polygon Labs, Fireblocks, and several other entities, with the support of Italian banks, asset management firms, and 10 additional financial institutions. Chosen during the Milano Hub's second call for proposals, the project outshone six other fintech innovations, thereby gaining six months of comprehensive expert advice and regulatory research assistance.
The intriguing domain of security tokenization is an emergent field within blockchain technology. Recent projections from Citi Global Perspectives & Solutions suggest that the market for tokenized securities could be valued anywhere from $4 to $5 trillion by 2030. They foresee private equity and venture capital leading the tokenization surge, with real estate following close behind.
In a rapidly evolving financial landscape, projects like these reflect an effort to better understand and harness the potential of emerging technologies while creating a safer and more inclusive financial future.
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