Vertex Co-Founder: DeFi Needs to Evolve to Capture Institutional Interest

IconCryptoNewsTerminal Staff30 May, 2024

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Vertex Co-Founder: DeFi Needs to Evolve to Capture Institutional Interest

Vertex Co-Founder: DeFi Needs to Evolve to Capture Institutional Interest In an interview with DL News, Darius Tabai, co-founder of Vertex, a decentralized derivatives exchange protocol for cryptocurrencies built on Arbitrum (ARB), commented on the growing interest from institutions in DeFi. "There is definitely increased interest from a number of institutions in DeFi," Tabai said. "The problem with DeFi is that it's still the Wild West... On Wall Street, you have a legal obligation to do your KYC, you need to know your counterparty. So, they can't just use a DeFi protocol where they don't have any idea who they're dealing with." Tabai believes that the solution to this problem lies in creating new hybrid models that are partly centralized and partly decentralized. This would allow institutions to participate in DeFi while still meeting their regulatory obligations. "You may end up with a new hybrid model that is partly centralized and partly decentralized," Tabai said. "I think that's the future of DeFi."

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