- July 19, 2021
- Posted by: Stratford Team
- Category: Business
- Decentralized finance (DeFi) is emerging as a tool for smaller businesses in developing markets, particularly for remittances and small loans;
- The transaction banking industry is beginning to see DeFi’s potential to overhaul the inflexibility of present processes;
- Uptake of DeFi in transaction banking could open up new capital opportunities for larger companies and increase liquidity for SMEs.
Decentralized finance had a resurgence last summer. Cryptocurrencies like bitcoin and ether are now becoming more widely accepted for payments and USD Coin (USDC) has made significant progress towards being an asset that will maintain its value without future depreciation.
At the same time, the blockchain technology that underlies cryptocurrency and its supporting financial infrastructure are on their way to offering a system of financial rails in parallel to – and connected with – traditional financial infrastructure.