Also ING, one of the world’s leading financial and banking groups, is enticed by the world of decentralized finance – and has started work on its own system, which will particularly exploit the possibilities offered by these technologies for lending.
All this by quoting AAVE – in the manner that we will analyze in the course of our in-depth study today – which currently remains the most successful protocol for this type of use of the decentralized finance.
What ING has in mind and why it might matter to the DeFi industry
The best banks in the world are already eyeing the world of DeFi for some time, with groups such as JP Morgan, for example, which are already in an advanced stage of testing. It is also added to the groups already exposed to this type of market ING, who seems to be interested in the world of P2P lending which can be managed precisely through the protocols of decentralized finance.
In other parts of the world we are already sandbox testing in relation to the rules offered by the law. We have a P2P lending project on DeFi in Amsterdam, which we are also working on with the regulator.
Reference is therefore made to AMF, the homologation of CONSOB to Amsterdam – although a further clarification of the group states that there would not be a finished product yet.
All this from a group that had already had the opportunity to publish a detailed whitepaper on DeFi, citing his own $ AAVE as one of the reference protocols in the lending sector that have the world of cryptocurrencies as collateral, mainly in the world of ETH.
It will not be crypto loans
What would appear to be certain now is that it will not be loans with cryptocurrency collateral, with the bank admitting that it is far more interested in what is happening in the world of stablecoin.
What interests us is how it is possible to create peer to peer loans on different types of collateral. We have other ways of doing this in mind, without relying on the volatile BTC.
Therefore a leap into the world of cryptocurrencies and of blockchain without, however, treating coins and tokens as reserves of value, but exploiting their technology permissionless.
What does this mean for the whole sector?
In our opinion this is great news for those protocols like AAVE, which can already offer subchains to institutional clients, thus becoming infrastructure and technology providers also for the main groups in the world in terms of strength in the banking sector. We had correctly anticipated the birth of the DeFi revolution even among those subjects who, at least on paper, would have more to lose from an affirmation of this type of technology.
In 2022 we will see some good ones, when even the groups that have fallen further behind will have to deal with an infrastructure significantly superior to that currently used by banks.