A consortium of diverse enterprises is garnering backing from an Italian central bank-supported research hub to forge an innovative ecosystem, facilitating traditional financial institutions to venture deeper into the realm of DeFi.
Cetif Advisory, an adept research consultancy championing digitization solutions for banks, insurance companies, and other TradFi entities, has proudly announced the receipt of developmental support from the esteemed Milano Hub. This cutting-edge research center, backed by the Bank of Italy, is fueling the creation of an “Institutional DeFi for Security Token” ecosystem.
The ambitious project boasts a formidable partnership with industry leaders, including Polygon Labs and the digital asset platform Fireblocks. Together, they are dedicated to establishing a secure and open operating environment exclusively designed for institutional players, as declared by Imanuel Baharier, the sagacious General Manager of Cetif Advisory.
The European Union’s landmark Crypto Regulation, famously known as MiCA, deserves our attention to comprehend its intricacies fully.
In stark contrast to retail investors in DeFi who often navigate the unregulated wilderness fraught with risks, traditional firms find such uncertainties insurmountable and unjustifiable.
Baharier further divulged that Cetif’s protocol will seamlessly integrate traditional rails encompassing know-your-customer (KYC) and anti-money laundering (AML) measures, offering a sense of familiarity to these entities.
The visionary goal, passionately emphasized by Baharier, revolves around enabling platform access by 2024 and facilitating real-world testing of the tokens under development on secondary markets.
“Our firm conviction is that this juncture is opportune to secure our position as a leading ecosystemic player in the burgeoning security token market,” Baharier confided to Decrypt.
The Milano Hub, a steadfast supporter, commenced its involvement on July 3, committing six months to this groundbreaking initiative.
While financial support is not part of this collaboration, the project will enjoy the invaluable expertise of financial regulation consultants, adeptly aiding in organizing events to propel its success.
Central to the project’s vision is the creation of a secure security token tailor-made for seamless integration within the protocol. Italy’s prominent financial institutions, such as Banca Mediolanum and the esteemed private bank Intesa Sanpaolo, lend crucial support to this endeavor.
Baharier disclosed that these esteemed institutions will play a pivotal role in introducing the tokens to primary markets and eventually paving their path to the secondary market.
Rest assured, the value of these tokens will find unwavering backing from these reputable firms, instilling confidence and certainty in the ecosystem’s core.