To many of us, decentralized finance is still ‘big sky country’ – there’s a lot of potential and a wide space for innovation. But as with many other kinds of new tech trends, there are relatively few pioneers breaking into this space in order to flesh out our concept of what DeFi looks like. Of course, that number is growing all the time – but proponents feel it’s only a matter of time until DeFi moves from something obscure to becoming a household name in finance.
Here are some of the groundbreaking companies that are doing interesting and exciting things in the decentralized finance space.
The XAR network is a secure blockchain network for banks and financial companies and other stakeholders.
Company leadership holds that banks are now getting on the blockchain, and that by collateralizing crypto assets, XAR is offering cutting-edge services to clients. Company spokespeople say that XAR was created “because of a need of corporate and central banks to use blockchain technology in a private, permissioned space” and characterize its services this way:
“As our feature set grew we noticed consistent cross-over with the decentralized finance space, so eventually the XAR toolkit grew to a fully fledged decentralized finance toolbox. We launched XARNetwork to support this transition from traditional to decentralized finance, to bridge the traditional and decentralized worlds.”
Part of the platform’s appeal to traders is its immediacy. Decentralized validation happens quickly, for a wide range of digital asset transactions.
The decentralizing finance company DeFi Solutions also works with banks, credit unions and fintech customers of all kinds, in order to accommodate transformative DeFi lending.
With loan origination tools, lender servicing and analytics toolkits, DeFi Solutions leverages experience in auto lending with acquisitions and partnerships, for example, a collaboration with Zest AI for loan decision-making processes.
Promising “cold storage to cold hard cash,” Cred is innovating what it calls “greed-free financial services,” offering borrowers radically lower interest rates than in other transactional options and accommodating transactions for cryptocurrencies, fiat currencies and precious metals.
Cutting-edge proprietary security and comprehensive insurance help Cred to confidently offer financial options to users with a variety of tools and resources. For example, asset holders can accrue fixed interest in an ecosystem that rewards proactive crypto handling and cold wallet strategy. Cred is a vanguard firm in the exploration of modern DeFi transaction systems.
Founded by a Ukrainian former finance forecasting professional, DeFiZap
uses DeFi protocols and ERC-20 token compatibility to create what it calls a “Venmo-like” experience for end users.
Integrating DAI is another feather in DeFiZap’s cap: along with the biggest crypto coins, Bitcoin and Ethereum, DAI stands as a top practical example of a protocol that represents the decentralized nature that DeFi tools need to work: by contrast, stablecoins do not fulfill the common requirements that investors think of when they ponder decentralized structures for assets.
Tools available on the site include one-click access to lending packages that can help digital holders to optimize assets. Versatile handling of smart contracts makes this one to watch in the DeFi space.
eToro is an interesting study in DeFi – new reports show that in addition to working on a programming language called Lira to revolutionize the way that digital asset derivatives are handled, the exchange is looking to integrate DeFi products. eToro is also an example of an exchange that demonstrates thought leadership, for example, in placing its pundits next to anchors and reporters in prominent tech media.
These are some of the big players in DeFi, which is really exploding across the fintech world. Decentralized finance provides real, credible benefits for traders, and advances the process of untethering money from national banks and other institutions. For investors who want to move confidently into the blockchain, DeFi provides new options that can enhance not only portfolios, but the transactions that power digital finance.