Italy’s Central Bank picks Polygon for bridging the gap between traditional finance and DeFi
- A consortium of companies backed by the Italian central bank are developing an ecosystem for traditional banks to enter the DeFi industry.
- The institutional DeFi for security token ecosystem will be developed in partnership with Polygon Labs and Fireblocks.
- MATIC price eyes recovery, the Ethereum scaling token is trading at $0.7128 at the time of writing.
Cetif Advisory, a consortium of companies backed by Italy’s central bank, is exploring the use of Ethereum scaling solution Polygon and crypto custodian Fireblocks to help traditional finance move to the DeFi ecosystem.
The tokenization of real-world assets and development of other innovative ideas in DeFi have garnered the attention of traditional financial institutions. Banks and firms are looking to dabble in security tokens and execute transactions using DeFi rails in a regulated manner.
Bank of Italy opens doors to DeFi innovation with Polygon and Fireblocks
Ethereum scaling solution Polygon was chosen by Bank of Italy’s innovation hub to dabble in decentralized finance projects. Polygon Labs, an Ethereum scaling solution and the crypto custodian Fireblocks will help traditional institutions experiment with tokenization of assets and relevant DeFi projects.
The Italian central bank’s center for developing innovative ideas in finance, Milano Hub has taken up the responsibility to develop an, “Institutional DeFi for Security Token ecosystem” within a six month timeframe.
The institution’s plan is to help traditional financial firms experiment with security tokens and execute transactions using DeFi rails in a safe, regulated manner. Tokenization of real world assets is an emerging trend in the crypto ecosystem and Italy is taking steps in the direction to bridge the gap between traditional finance and DeFi through its partnerships with Polygon Labs and crypto custodian Fireblocks.
Polygon’s native token MATIC is trading at $0.7128 at the time of writing and a boost in utility and partnerships of the Ethereum scaling blockchain is expected to catalyze a recovery in the token.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
