Compliance and Security Are the Largest Barriers to DeFi for Institutions; VALK Data Finds

New search from Falk Highlight concerns institutional investors About custodial and security services in relation to decentralized finance (DeFi), although it is waning somewhat in the wake of the strong growth of the sector and increasing optimism about its future.

Her study, which included professional investors operating in eight major corporate holding economies
Over $1 trillion in assets, it found how 54 percent are very concerned about DeFi custodial services, while 52 percent are still equally concerned about security issues.

28 percent said they are very concerned about the regulatory environment for DeFi, while 21 percent are concerned about the risks.

However, 15 per cent of investors questioned in the UK, US, France, Germany, Hong Kong, Singapore, Australia and Brazil are not at all worried about custodial services and 14 per cent have no concerns about security. 11 percent said they had no concerns about risks and only 7 percent said they had no concerns about the regulatory environment, with the majority expecting this to improve.

The research found how 84 percent of investors expect the regulatory environment to improve over the next three years, and 12 percent hope for a significant improvement.

Antoine Louth, co-founder of VALK
Antoine Loth

Talking about the results of her data, co-founder of VALK Antoine besmear Comments: “DeFi is growing rapidly. There was less than $1 billion of digital assets held in DeFi services two years ago, and today that number is over $250 billion, so institutional investors dealing with billions of assets naturally have concerns.

In addition, co-founder of VALK Eli disgusting He said, “VALK anticipates more transparency regarding the use of DeFi protocols over the coming months and years, and with that the institutional interest in using DeFi will increase. The DeFi smart wallet and smart aggregator will serve not only crypto citizens, but also the growing number of institutions from traditional finance (TradFi) that It has shown an interest in financing its DeFi assets.”

In an effort to allay investor skepticism, VALK is preparing to introduce the “Merlin” DeFi smart wallet, which is set to launch this month. A smart wallet provides scope for analysis on the blockchain of user DeFi locations via multiple protocols. It then extracts all transactions related to a single wallet, retrieves the position of each digital asset deployed via the DeFi protocols and calculates the positions (against the US dollar or another currency) along with the resulting return.

Other information from DeFi protocols such as assets held, PNL, return earned (daily) and portfolio value is also provided. These reporting features are missing from traditional DeFi smart wallets, but they are essential for investors, especially institutional fund managers, who need daily monitoring and tracking of NAV and investment returns across positions/assets in their portfolios.

VALK’s DeFi aggregation platform is a trustless portfolio management system for digital asset/fund managers as well as retail, enabling investors to manage a decentralized finance (DeFi) portfolio on a single interface on a smart account. It is an API for lending and borrowing DeFi protocols, connecting financial institutions to all crypto markets and enabling the deployment of a variety of revenue generation strategies.

VALK will reportedly continue to digitize and support the transaction flows of the VALK Deal platform, which includes tokenizing financial assets and connecting customers to a broader ecosystem on both the buy and sell sides. By doing this, the assets, which are based on debt and equity, are pooled on the chain and consolidated due to their token nature.

Ultimately, VALK aims to fill the financing needs of its customers with liquidity via DeFi protocols. This bridge between TradFi and DeFi is now a reality MakerDAOIts commitment to provide a scalable framework for real world assets (RWAs) to use as collateral within their vaults and to establish a credit facility to finance real world activity.

The platform is used by more than 90 TradFi organizations with $4 billion in assets
Implementation of these bridges. This framework can be built to fit licensed pools, where only lenders and borrowers who have taken on KYC can participate, a major step forward in introducing compliant institutional activity into DeFi.

Leave a Reply

Your email address will not be published.