"Decentralized finance, or DeFi, first took off around 2018, and is regularly hailed as a technology that breaks apart the traditional stack of financial services, and replaces it with a composable, Lego-like alternative. This is a fair description. But it also obscures the fact DeFi actually unifies many elements of finance, says Arjun Sethi, the co-CEO of Kraken and the featured guest on the newest episode of Fortune's Crypto Playbook vodcast (available on Spotify, Apple, and YouTube)."
"While DeFi tools offer enormous opportunities, they have largely remained beyond the realm of ordinary consumers due to the complexity of accessing them. This is beginning to change, however, as companies like Kraken are building interfaces that let consumers use DeFi in a manner that feels more like a traditional bank or brokerage. Kraken's recent offerings include xStocks, which are tokenized shares of popular companies like Apple or Tesla."
Decentralized finance (DeFi) emerged around 2018 as an alternative to the traditional financial stack, often portrayed as a composable, Lego-like system. DeFi uses open protocols that enable customers to control who handles their assets and allow protocols to interoperate, effectively unifying previously fragmented elements of finance. Traditional banks historically created walled gardens that restricted customer choice over backend transactions. DeFi can defragment assets across markets. Complexity has kept many consumers from accessing DeFi, but firms are building bank-like interfaces to simplify use. Tokenized asset products such as xStocks make shares accessible in markets like South Africa and Argentina with lower fees.
Read at Fortune Crypto
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