• The Bank of Italy has selected a DeFi project with Polygon Labs and Fireblocks to help financial institutions explore security tokens in a secure manner.
• The aim of the project is to enable traditional financial institutions to safely and compliantly experiment with security tokens and conduct transactions using DeFi protocols.
• Tokenization has gained significant popularity in the cryptocurrency space, with traditional financial institutions and digital asset companies tokenizing conventional assets like bonds and equities on blockchain platforms.
Bank of Italy Selects DeFi Project
The innovation center of the Bank of Italy has selected a decentralized finance (DeFi) initiative that involves the collaboration of Polygon Labs, a developer specializing in scaling the Ethereum network, and Fireblocks, a crypto infrastructure provider. The primary objective of this project is to assist financial institutions in exploring security tokens and conducting transactions using DeFi protocols in a secure and compliant manner.
Project Aim
The aim of this project is to enable traditional financial institutions to safely and compliantly experiment with security tokens and conduct transactions using DeFi protocols. This platform will bridge the gap between traditional finance and DeFi through its collaborations with Polygon Labs and Fireblocks. Cetif Advisory leads the platform development with Polygon Labs, Fireblocks, Reply, Linklaters, and DVRS involving Italian banks including Intesa Sanpaolo.
Popularity Of Tokenization
Tokenization has gained significant popularity in the cryptocurrency space, with traditional financial institutions and digital asset companies tokenizing conventional assets like bonds and equities on blockchain platforms. According to a report from Bank of America, tokenization has the potential to revolutionize value transfer, settlement, and storage across all industries by facilitating faster transactions at reduced expenses while establishing a more streamlined financial infrastructure.
Key Players And Participants
Cetif Advisory is leading the platform development alongside other industry leaders such as Polygon Labs, Fireblocks, Reply, Linklaters, DVRS as well as Italian banks including Intesa Sanpaolo for six months actively supporting for Institutional DeFi for Security Token ecosystem .
Conclusion
Italy’s collaboration with Polygon Labs & Fireblocks seeks to bring about transformative changes within the payment infrastructure by bridging gaps between traditional finance & Defi through tokenized assets whilst maintaining compliance & security standards for financial institution users .
