By Kieran Mesquita, Chief Scientist at RAILGUN
Corporate treasuries are already pivoting to greater involvement in decentralized finance (DeFi), but the privacy solutions available aren’t anywhere near the level of security used for traditional finance. Until the problem of blockchain transparency is properly addressed, the broad adoption of crypto and DeFi will pose a challenge for governments, banks, and investment firms.
Institutional Involvement in Crypto Is a Reality
It is clear that crypto hedge funds will continue to grow and take up a larger market share of investment opportunities in this space. Even pension funds are trying to find back doors into DeFi so that their assets can benefit from crypto markets. As corporations and banks continue to explore the benefits of holding and trading crypto, the industry needs to prepare for the unique challenges and requirements of institutional investors. Two major obstacles remain for corporate treasuries and similar ventures: regulation and privacy. Regulation has been widely discussed, but now is the time to center privacy in the conversation about blockchain.
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