We outline the market outlook for institutional DeFi in the financial services industry — from investment trends and leading companies to recommendations for the players in the space.
What is institutional DeFi?
Institutional decentralized finance (DeFi) companies provide decentralized financial products to financial institutions with strict compliance needs. Institutional DeFi is made possible through whitelisting and knowing your customers’ pools of participants. The space includes compliance and tracking tools, advanced custody and security, or index products tracking DeFi tokens.
Features & capabilities
Institutional DeFi provides institutional investors & traders with several capabilities, including the following:
- Open-source blockchain platforms
- Professional team collaboration tools
- Military-grade institutional crypto custody
- 3-tier private key storage architecture
- Non-fungible tokens management platform
- Multi-party computation cryptography
Institutional DeFi companies offer these substantial benefits to institutional investors & traders:
- Increased trading volume
- Improved efficiencies and investor satisfaction
- Minimal investor complaints
- Reduced compliance/regulatory issues
- Reduced operating costs
- Enhanced security