DeFi: Traditional financial companies acknowledge Decentralized Finance

Recent statistics are showing a massive shift towards DeFi. A Forbes report stated that many traditional financial firms are turning towards DeFi. DeFi has been the buzz since the Bitcoin bulls of 2017, yet it did not see much institutional adoption until recently.

What is DeFi?

Although the term is often used to describe the broad range of services provided by Ethereum, in this context it refers to the entire ecosystem of blockchain-based finance.

DeFi or Decentralized Finance is the use of decentralized ledger technology for financial purposes. These include digital assets such as cryptocurrencies, smart contracts, and decentralized applications built on blockchains.

Forbes report included information about a financial firm that is now turning towards cryptocurrencies. The Swiss company called Rainier AG has been around for over four decades providing financial services, including wealth management to clients worldwide. Being based in Switzerland has provided the firm with ample exposure to innovative technologies such as blockchain.

Now the company has turned its gaze towards cryptocurrencies with the launch of its International security token offering (STO) platform. The company has also launched a crypto trading platform and a service that allows customers to use both Fiat and crypto for purchases using a single account.

Rainier AG is not alone in the list of firms that have turned to crypto. Tech giants such as Samsung, IBM, and Microsoft have already implemented the technology to some degree. Meanwhile, social network companies, including Facebook and Telegram, are also involved in the cryptocurrency market.

All of these companies understand the need to shift towards a more secure and efficient system. Permissionless finance can increase the efficiency of the entire industry simply by providing services across the clock around the globe.