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The impact and possibilities with decentralized finance and digital banking continue to expand. In this episode of The Yield, Peter Kerr, CFA, Director of Product Marketing for Yieldstreet, and Jason Blick, CEO of EQIBank, join to discuss the evolution of digital banking. From digital banking for corporate and private clients to decentralized protocols for pooled lending and borrowing for crypto and stablecoins, Peter and Jason cover a wide array of topics.
With the aim of creating a global bank that works in countries around the world, EQIBank is no stranger to the extensive variety that comes in the jurisdiction from one country to the next. Banks currently have different lines of business and different operating structures depending on the various geographies. EQIBank has overcome this problem by creating one single vertical stack of products that meet the requirements of over 180 countries around the world. Simply put, their KYC (know your client) and AML (anti-money laundering) requirements go beyond the traditional bank. This is notable for not only the retail market but for globally underbanked countries as well.
And how does crypto fit into this global banking ecosystem? Crypto is experiencing increasing retail demand not only from individual investors but in the corporate world as well. And there are countries like El Salvador that are adopting crypto as their national currency. Across the globe, the demand for cryptocurrencies is steadily increasing, and companies like EQIBank are at the forefront, making sure that their customers are offered the kind of digital offerings- and customer service experience- they are interested in.
Of course, the size of the industry also has an impact on bitcoin and cryptocurrency offerings. In this $30 trillion industry, there is a place for not only crypto and bitcoin but stable coins as well. As Jason explains, standard currencies are slowly transitioning away from the US dollar and toward cryptocurrencies, making transactional business possible at faster paces and with seemingly improved security.
Decentralized finance is among the most rapidly growing sectors of financial services. At its core, DeFi refers to the removal of banks, brokers, and exchanges so that users can trade amongst themselves, a possibility which is often appealing to many of today’s investors. And while this may pose a threat to legacy banks, according to Jason, he has little doubt that DeFi has the opportunity to take its place at the center of the future of microeconomic banking transactions. DeFi can not only decrease transaction time, getting money into the hands of its users faster, it also has the potential to give people more control over the value of their money. And while major central banks may not be dramatically affected by DeFi, it is expected that their existing economic policies can be more quickly and efficiently deployed by using DeFi. As you’ll hear in this episode of The Yield, decentralized finance and digital banking may be a key in helping more investors to realize their next level.