Cetif Advisory's initiative was one of seven projects approved within the fintech sector.
Cetif Advisory's initiative to develop a security token ecosystem for institutional decentralized finance (DeFi) has found a supporter in the Bank of Italy's Milano Hub, an innovation center dedicated to fostering fintech advancements.
The purpose of this project, which is centered around Cetif Advisory, a subsidiary of Milan's Università Cattolica del Sacro Cuore's Cetif Research Centre, is not aimed at commercialization but instead to deepen the comprehension of security tokens within secondary markets.
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Cetif Advisory's general manager, Imanuel Baharier, expressed the significance of such an initiative, stating:
We believe it is vitally important to create the conditions for DeFi to become a safe and open operating environment for supervised entities.
Further refining the functionality of the Lionity platform, an "institutional-grade automated market maker," is part of the project's mission. This will allow institutional participants to venture into DeFi while remaining compliant with regulatory norms.
The project is a collaborative effort between Cetif Advisory, Polygon Labs, Fireblocks, and several other organizations.
The Milano Hub selected the project during its second call for innovative proposals, endorsing it as one of the seven projects approved within the fintech sector. Over the next six months, the Milano Hub will offer expert advice and comprehensive regulatory research to back the project.
Asset management firms, Italian banks, and a handful of other financial institutions are set to partake in this venture.
The tokenization of securities, a rising facet of blockchain technology, is poised to make considerable waves in the financial world.
Estimates from Citi Global Perspectives & Solutions predict that by 2030, the tokenized securities market could reach a valuation of between $4 trillion and $5 trillion. The insights gained from this project could prove crucial in navigating this fast-evolving landscape.
