IBM to guide banks through the essence of decentralised finance

The IBM executive in charge of Financial Services and Digital Assets, Nitin Gaur, outlined plans for the tech giant to act as a conduit for financial institutions in the rapidly expanding DeFi space.

In an interview with Cointelegraph, the author of the book “Blockchain for Business” noted the crucial importance for banks to understand decentralised finance.

“DeFi has the potential to eventually become an alternative to elements of existing business models. Financial institutions would do well to understand this,” the top executive said.

Gaur said IBM will ease banks' navigation of this space, whose activity is fraught with numerous “regulatory challenges.” In his view, many financial institutions cannot move beyond early-stage research today. They are stuck on the path from simply digitising traditional securities to “true decentralised finance.”

The executive is convinced that banks, notably investment banks, will inevitably push forward in this space. The notable development was the appointment of the new head of Goldman Sachs' digital assets department, who outlined far-reaching plans involving the use of DLT, including the launch of the firm's own stablecoin.

A representative from IBM contends that to accelerate the creation of DeFi products, financial institutions should change their approach. He is convinced banks must embrace the global nature of blockchain. Only in this way will the blockchain products they develop deliver value to users.

Gaur stressed that IBM is ready to bring banks into the dynamism of the global DeFi market and to help create innovative, value-added, competitive products with additional value.

Recall that Genesis Global Capital and Circle have begun developing DeFi protocols based on the USDC stablecoin. For other developments in the decentralized finance space, read the traditional digest.

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