The Bank of Italy’s Milano Hub innovation center is set to provide vital support for an ambitious project developed by Cetif Advisory. The focus of this collaboration revolves around researching a secure token ecosystem for institutional decentralized finance (DeFi).
Bank of Italy’s Milano hub to help in DeFi research
At the core of this endeavor lies the exploration of security tokens on secondary markets, which are digitized representations of real-world assets’ ownership. The primary goal of the project carried out in Bank of Italy’s Milano hub is not commercialization but to expand the scope of analysis within the security token landscape. Imanuel Baharier, the General Manager of Cetif Advisory, emphasized the significance of establishing a safe and open operating environment for supervised entities within the DeFi space.
The aspiration is to allow institutional market participants to navigate DeFi landscapes while adhering to stringent regulatory guidelines. A pivotal aspect of the project’s development involves enhancing Cetif Advisory’s Lionity platform, which has been recognized as an “institutional-grade automated market maker.” Cetif Advisory, a spinoff of the esteemed Cetif Research Centre at the Università Cattolica del Sacro Cuore in Milan, is leading the collaboration with the Bank of Italy’s Milano hub. The venture has garnered the support of several organizations, including Polygon Labs and Fireblocks.
Additionally, asides from the Bank of Italy’s Milano hub, notable Italian banks, asset management companies, and ten other financial institutions are actively participating in the initiative. The selection of the Cetif Advisory project came about during the Milano Hub’s second call for proposals, where it stood out among numerous fintech projects. As one of seven approved projects in this category, it is set to receive expert advice and extensive regulatory research assistance for six months, commencing this month.
The research focus on securities tokenization is timely, given its emergence as a promising field within blockchain technology. According to projections from Citi Global Perspectives & Solutions, the tokenized securities market could reach an impressive valuation of $4 trillion to $5 trillion by the year 2030. The sectors expected to witness the most significant tokenization growth include private equity, venture capital, and real estate.
The collaborative project’s multifaceted approach aims to bridge the gap between institutional investors and the DeFi realm, a domain that has traditionally been associated with more individual participants. By fostering an environment that adheres to regulatory compliance, the project seeks to facilitate seamless and secure participation from supervised entities in DeFi.
Certif Advisory wants to advance DeFi using its platform
The extension of the scope of analysis to secondary markets in the security token landscape adds a layer of sophistication to the ongoing research. This expansion of knowledge may prove instrumental in advancing DeFi technology further and opening up new avenues for investment. Cetif Advisory’s Lionity platform, as an institutional-grade automated market maker, is anticipated to play a pivotal role in streamlining transactions and enhancing liquidity in the DeFi environment.
The platform’s robust features are designed to cater to the specific needs of institutional players, fostering a conducive and efficient DeFi operating environment. The strategic collaboration with Polygon Labs and Fireblocks, alongside the participation of reputable financial institutions, underpins the project’s potential for real-world impact. As these organizations bring their expertise and resources to the table, the project gains access to a wealth of knowledge and practical insights that can steer it toward success.
The Bank of Italy’s Milano Hub’s support is a testament to the institution’s commitment to fostering innovation and research in the fintech domain. By providing expert advice and facilitating in-depth regulatory research, the Milano Hub is creating an enabling environment for projects like Cetif Advisory’s to flourish. The projected growth of the tokenized securities market in the coming decade underscores the significance of the research undertaken by Cetif Advisory and its partners.
As blockchain technology continues to evolve, security tokens are expected to play a transformative role in various industries, unlocking new possibilities for liquidity and investment. The collaboration between the Bank of Italy’s Milano Hub and Cetif Advisory marks a significant milestone in the advancement of institutional DeFi research.
By exploring security tokens’ potential on secondary markets and developing the Lionity platform, the project aims to foster a secure and regulated DeFi environment that welcomes institutional market participants. With the support of renowned organizations and financial institutions, this collaboration promises to contribute significantly to the evolving landscape of blockchain technology and tokenized securities.
