Opportunities and challenges co-exist side by side. Yin Yang.
And as we move, thank God that the universe is providing us the answer piece by piece, one at a time, every right things happen at the right moment.
Reading Notes:
Yes, there are no ready-to-go legal models built for corporates to attract or borrow funds from DeFi protocols on the market today.
But it’s possible to build one with minimal effort, as the benefits of DeFi borrowing easily cover the efforts of building such a system.
DeFi might be able to provide borrowing on perfect terms for corporate institutions, which is something that might make them consider entering the market.
Meanwhile, corporate institutions will be willing to provide several types of stable assets to be used as collateral for their loans.
However, there is a real need for real-world assets to be used as collateral in DeFi protocols to prevent more market falls in the future, fixing the over-collateralization issue along the way.
Opinion from the author:
Until new regimes for the offering of tokenized instruments are built (and there are no bright signs in this direction), I believe real-world assets tokenization in a form of an STO will still be limited to closed offerings with no attention from the global market.
Artem Tolkachev is the founder and CEO of Tokenomica. For over six years, Artem has been a key blockchain and tokenization opinion leader in the CIS region. Since 2011, he has been an intellectual property and information technology lawyer and entrepreneur. In 2016, Artem founded and headed Deloitte CIS Blockchain Lab. As part of that initiative, he led a range of innovative projects involving the implementation of enterprise blockchain solutions, tokenization of real-world assets, tax and legal structuring of security token offerings, development of cryptocurrency, and blockchain legislation.
https://cointelegraph.com/news/why-defi-plus-asset-tokenization-will-take-crypto-to-new-heights
Notes: Less regulatory uncertainty, a developed market infrastructure, and less risk surrounding security will bring the crypto market cap to $2T and above.