The Italian central bank Milano Hub has partnered with Cetif Advisory and Polygon Labs for a groundbreaking DeFi tokenization project. This is a significant move towards promoting institutional decentralized finance (DeFi). Moreover, this initiative was selected in the second round of proposals. It primarily aims to research and establish a security token ecosystem for institutional DeFi.
Exploring the Security Token Ecosystem for Institutional DeFi
The primary objective of the project, led by Cetif Advisory, is to expand the analysis of security tokens on secondary markets. This is expected to be without any commercialization purpose. Moreover, security tokens, which represent digitized ownership of real-world assets, hold immense potential for reshaping the financial landscape.
Imanuel Baharier, the General Manager of Cetif Advisory, expressed their conviction. He is positive about creating a secure and transparent operating environment for supervised entities within the DeFi space.
Furthermore, one of the critical aspects of the project involves the development of Cetif Advisory’s Lionity platform. The platform serves as an institutional-grade automated market maker. It aims to facilitate the participation of institutional market players in the DeFi realm while remaining compliant with regulatory guidelines.
Collaborative Efforts
The Cetif Advisory project has brought together industry leaders. These include Polygon Labs and Fireblocks, to ensure comprehensive expertise and innovative solutions. This collaboration also involves active participation from Italian banks, asset management companies, and ten other financial institutions, contributing to the project’s robustness and diverse perspectives.
Additionally, the Milano Hub’s second call for proposals in the fintech category has been instrumental in driving cutting-edge projects like the Cetif Advisory initiative. Out of several compelling projects, seven received approval, with the DeFi tokenization project securing a prominent place.
As part of the support provided by the Milano Hub, the project will receive expert advice and in-depth regulatory research over the next six months, commencing this month.
The Bright Future of Tokenized Securities Market
As the project delves into the emerging field of securities tokenization, experts predict a promising future for this market. Citi Global Perspectives & Solutions anticipates the tokenized securities market to reach a valuation of $4 trillion to $5 trillion by 2030. Private equity and venture capital are expected to be the most tokenized sectors, closely followed by real estate.
The collaborative efforts of the Italian central bank’s Milano Hub, Cetif Advisory, Polygon Labs, and other industry stakeholders present an exciting journey towards reshaping institutional DeFi and embracing the potential of tokenized securities.
As this project unfolds over the coming months, the financial landscape is set to witness transformative changes. This will further unlock new possibilities for investors and institutions alike.
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