In its second round of applications, the Milano Hub of the Italian central bank chose a project led by Cetif Advisory and Polygon Labs.
Be prepared to see a revolutionary partnership in the decentralized finance (DeFi) industry when Cetif Advisory and the Bank of Italy’s Milano Hub innovation center team up to examine the possibility of a security token ecosystem for institutional DeFi.
This intriguing project attempts to explore the secondary market potential for security tokens without any commercialization intent. Security tokens, which signify digital ownership of physical things, have enormous potential to change the financial environment. The General Manager of Cetif Advisory, Imanuel Baharier, emphasizes the significance of establishing a safe and transparent working environment for supervised organizations in order to foster the growth of DeFi.
The empowerment of institutional market participants to prosper in a DeFi environment while following to regulatory requirements is a primary objective of this unique project. The team will improve Cetif Advisory’s Lionity platform, an institutional-grade automated market maker, to accomplish this and guarantee a seamless transaction for all parties.
Cetif Advisory, Polygon Labs, Fireblocks, and other prestigious organizations worked together on this enormous project. Notably, eleven additional financial institutions, eminent Italian banks, and asset management firms will actively take part in this ground-breaking study.
One of the seven fintech initiatives that were approved during the hub’s second request for ideas was the Cetif Advisory project. The Milano Hub will provide the project with essential assistance over the period of six months, beginning this month, in the form of knowledgeable counsel and thorough regulatory research.
The blockchain industry is seeing a strong uptake in the tokenization of securities. Indeed, according to analysts from Citi Global Perspectives & Solutions, the market for tokenized assets could reach a startling $4 trillion to $5 trillion in value by 2030, with private equity and venture capital leading the way and real estate trailing closely behind.
The future of institutional DeFi promises to be safe, dynamic, and compliant with the constantly changing regulatory landscape as the Bank of Italy’s Milano Hub advances this innovative project. Prepare yourself to welcome the new era of financial opportunities!