TradFi could move onchain due to ‘horrible banking experiences'
'Thanks to horrible banking experiences, we've seen a lot of finance coming into fintech, and fintech applications [have been] able to capture a lot of market share,' Kulechov said onstage at EthCC 2025.
He added that Aave Labs, which develops the decentralized lending and liquidity platform Aave Protocol, and other decentralized finance projects have been 'working on how to actually get all this utility into more decentralized mediums.'
'Over 60% of the population has some sort of a digital wallet. It's not onchain, but they have some sort of a digital means of interacting with certain transactions,' Kulechov said.
'A lot of the adoption has happened in digital finance at the moment, and the continuation is how to bring this mass onchain.' Tokenized real-world assets can pull in TradFi
Kulechov said that the tokenization of real-world assets is a 'multi-trillion-dollar opportunity' for the crypto sector to engage with traditional finance.
'There's real estate, there's government bonds, there's equities, corporate bonds, and there's a bunch of other categories of assets out there that could be more efficiently handled on a transparent ledger and a more programmable environment,' he added.
Kulechov said that if the crypto sector is 'able to get all this legacy stuff onchain,' it could create a more efficient environment for the assets and could 'build beyond' and create assets that 'could exist that [don't] exist because of these inefficiencies.'
'DeFi is the only technology that actually can do that in a borderless way,' he added. DeFi needs to be '10 times better' for mass adoption
Kulechov, however, acknowledged that decentralized finance 'is not really known publicly' and many protocols, including Aave, are 'not even close' to having the same number of users as some fintech apps.
He said DeFi needs to present 'a clear value proposition' and needs to solve 'real problems and have good solutions' to have a chance at mass adoption, adding:
'If we want to compete with traditional finance, if we want to change the world, we want to do things 10 times better.'
'Your product needs to be 10 times better,' he said.
'When we bring the traditional assets, the traditional value chain, we have to offer something that is much better. There needs to be a better value proposition: Simplicity and accessibility,' he added. TradFi has started to use blockchain
Some financial tech companies have started to use blockchain technology, including BlackRock, which launched an Ethereum-based tokenized money market fund in March 2024 that has grown to over $2.8 billion in total value.
The company also filed in April to create a share class based on a digital ledger for its Treasury Trust fund, which will use blockchain to record share ownership.
Asset manager Libre Capital said in April that it would tokenize $500 million in Telegram debt, which is available to accredited investors and usable as collateral for onchain borrowing.
Source: https://cointelegraph.com/news/tradfi-consider-blockchain-after-banking-let-down-aave-founder
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
17 hours ago
- Crypto Insight
CoinShares secures French MiCA license, cementing EU presence
CoinShares, a major European cryptocurrency investment firm, has secured a license under the local regulatory framework, Markets in Crypto-Assets Regulation (MiCA). CoinShares received the MiCA license through its French subsidiary, CoinShares Asset Management, the company announced on Wednesday. With the license, CoinShares became the 'first continental European regulated asset management company' to be qualified under MiCA, the announcement noted. CoinShares, a major provider of crypto exchange-traded products (ETPs) in Europe, has also been expanding its US presence since acquiring Valkyrie Funds last year. Triple license mix Following the new license acquisition, CoinShares now holds three regulatory licenses in Europe, including MiCA, the Markets in Financial Instruments Directive (MiFID) license and the Alternative Investment Fund Managers Directive (AIFM) license. CoinShares said it's the only continental European asset manager with this triple license, allowing it to offer services across all EU asset classes. CoinShares' MiCA license, issued by the French Autorité des Marchés Financiers (AMF) on Thursday, allows the company to offer portfolio management and advice on crypto assets in the EU. The MiFID license allows it to do the same for traditional financial instruments. The AIFM license authorizes CoinShares to provide services in alternative fund management and delegated management under the EU's Undertakings for Collective Investment in Transferable Securities Directive (UCITS). A milestone for entire EU industry According to CoinShares co-founder and CEO Jean-Marie Mognetti, the MiCA license acquisition marks a major milestone not only for CoinShares, but for the entire crypto industry in Europe. 'For too long, asset managers operating in crypto have been confined to partial or improvised regulatory frameworks,' Mognetti noted, adding that MiCA has brought a 'clear, harmonised structure across the EU.' CoinShares stressed that its MiCA license enables it to provide services across several EU jurisdictions, with operations currently passported in France, Germany, Cyprus, Ireland, Lithuania, Luxembourg, Malta and the Netherlands. The announcement noted the possibility of extending the authorization across all EU member states. CoinShares makes moves in the US Apart from cementing its position as a key industry leader in the EU, CoinShares has also been actively working to compete with peers in the US market after officially entering the market in 2023. Since introducing the CoinShares Bitcoin and Ether ETF (BTF) — a futures ETF tracking the price of Bitcoin and Ether — in the US in October 2021, CoinShares has launched three more crypto funds in the market. The list of CoinShares ETFs currently offered in the US. Source: CoinShares The other funds include the CoinShares Bitcoin Mining ETF (WGMI) launched in February 2022, the spot Bitcoin ETF, CoinShares Bitcoin ETF (BRRR), and the Bitcoin Futures Leveraged ETF (BTFX), launched in January 2024 and February 2024, respectively. Following last year's acquisition of Valkyrie Funds, CoinShares has also been actively applying for other ETF products in the US, including a potential spot XRP (XRP) ETF. Source:
Zawya
17 hours ago
- Zawya
Emirates introduces retrofitted Boeing 777 to Madrid
Emirates has announced it will deploy its newly refurbished Boeing 777 aircraft to/from Madrid starting from September 16. Customers can look forward to an enhanced travel experience with upgraded interiors and premium signature travel touches across all cabins. Madrid is Emirates' first destination in Spain to operate with the airline's next-generation interiors. Emirates' four-class Boeing 777 will operate as flight EK143/EK144. Emirates flight EK143 will depart Dubai at 14:30hrs and arrive in Madrid at 20:20hrs local time. The return flight, EK144 will depart Madrid at 22:05hrs and arrive in Dubai at 7:10hrs local time, the following day. The deployment of Emirates' retrofitted Boeing 777 to Madrid marks a new era of premium travel to the Spanish city - offering customers the airline's award-winning Premium Economy service, newly configured Business Class cabin, and a 'better' travel experience to/from the country. Emirates' newest Boeing 777 cabin interiors include: A refurbished First-Class cabin with upgraded interiors. New Business Class cabin that provides more privacy and comfort for customers with fully lie-flat seats in an updated 1-2-1 seating configuration. Latest Premium Economy cabin which combines accessible luxury with comfort; offering cream leather seats, increased legroom, adjustable headrests, deeper seat recline and raised cushioned leg rests. Spacious Economy Class seats with new design elements. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Zawya
19 hours ago
- Zawya
Britain's biggest pension scheme to lobby governments more on climate
Britain's biggest private sector pension scheme plans to step up lobbying of governments, regulators and standard-setters to push for faster action amid a worsening climate outlook, its investment chief told Reuters. The Universities Superannuation Scheme, which manages nearly 78 billion pounds ($105.67 billion), has reduced emissions linked to its own portfolio. But Simon Pilcher said there was only so much schemes could achieve through asset reallocation. "That's why the high-value engagement is with governments and regulators to create the environment where the low-carbon action happens. It is, I would say, 90% up to them and only 10% up to capital allocation," the chief executive of USS Investment Management said. The British government in May signed an accord with pension investors to try to scale up investment in UK infrastructure and green programmes to help the country reach its net-zero goal, which is enshrined in law. Pilcher said changing the rules to make it easier for companies and consumers to overhaul their climate-damaging practices was the most effective lever for change, and the scheme had decided to "turn the dial up" on its lobbying efforts. "Corporates will change their activity when it's sane for them to do that," Pilcher said. "There needs to be a strong financial interest for those businesses to do the sensible thing; no one is going to spend money if, bluntly, they're going to be wasting that money." While USS IM has no formal arrangements with other investors, it has good relationships with the UK's local government pension schemes, and investors such as Railpen and Nest, the country's biggest auto-enrolment scheme, making it an influential voice within the sector. In the UK, lobbying would include talking to the Department for Energy Security and Net Zero about its strategy and encouraging them to, for example, reform the planning process to make it easier to connect renewables to the electricity grid. The United Nations said last October the world was on course to hit more than 3 degrees Celsius of warming above the pre-industrial average by the end of the century, based on current emissions-reduction pledges by countries, way off the world's goal of capping warming at 1.5 C. ($1 = 0.7381 pounds) (Reporting by Simon Jessop; Editing by Alison Williams)
