When Defi in the banking system

JP Morgan just performed its first Defi transaction yesterday quitely. 

Big banks knew something was not working, and they kept quite.

Transactions was done on Polygon with a modified version of AAVE protocol's smart contract. 

The project is a partnership between Singapore, Japan and US to test out potential Defi applications in the banking system. 

They also tested the tokenized government bonds transactions through a smart contract.

Defi is a product after the booming of blockchain technology that improves FinTech and makes finance more accessible to everyone at a low cost.

The potential to be enormous opportunities for lending services, particularly for small lending amounts to small business owners.  

With the higher risky loans that banks may not want to manage, Defi can provide additional security layers to operate with efficiency and a low-cost environment.

Such actions did not explore by mainstream media due to the skeptic and misinformation about crypto space.

Defi is a feasible way and effective tool if one can utilize it properly.

Although there are no yet regulations to catch up the technology, the application has already existed and been implemented around the internet. 

Especially with the current high inflation environment, there are fewer opportunities for investors to seek high-reward projects to invest. 

But with Defi, you may not have a problem finding a good project with due diligence and an understanding of the technology.

As long as the return is not sound too good to come true, Defi is a feasible instrument to help investors to find a better reward in difficult financial times.

With this core idea in mind, banks are exploring opportunities and integrating their traditional finance into the new technological tools to explore more options to help investors to earn more.

I think Defi has an unlimited possibility if banks are using them correctly to benefit society.

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Photo by Dmitry Demidko on Unsplash