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- DeFi platforms will soon help the sector merge with the real world
- Many platforms in the industry are seeking to bridge the gap with the real world
- Following the current scenario, it seems like soon, the traditional financial instruments will be recognized through the decentralized finance sector
DeFi or the decentralized finance sector is widely billed as the future of the traditional financial industry. The fact urge after observing the ever-growing range of protocols and tools allows users to leverage cryptocurrencies. Such options offer more innovative and valuable purposes, including pace and efficiency that a legacy technology cannot bring. However, until now, there is no connection between the DeFi and the real world. Most of the decentralized sector protocols are accessible using digital assets only.
DeFi generation can potentially close several gaps
Due to the inaccessibility to the DeFi industry with more traditional assets, many deemed that technology is generally built to empower individuals. However, some are willing to interact with the assets and protocols they are not familiar with.
Indeed, we have observed that cryptocurrency is not getting much support from retailers. Such technology makes the functionality as easy to pay as possible. However, the gap can be closed with the help of the DeFi platforms, which are seeking to incorporate the real world and traditional assets.
DeFi’s platforms bringing real-world assets to the sector
A platform named BondAppetit is one best example of a DeFi platform incorporating real-world assets to the sector. Notably, BondAppetit is the first platform offering fiat-pegged stablecoins and backing real-world assets. Such assets include fixed income securities of stable firms and plans to include other bonds and investments. Hence, where stablecoins are the most commonly used DeFi products, BondAppetit could be the first platform bridging the gap between the real world and the DeFi sector.
On the other side, other platforms like Convergence are also one platform seeking to bring more traditional assets to the realm. Convergence takes security tokens and wraps them into something known as a Wrapped Security Tokens (WST). And such tokens do represent traditional securities and assets like IPO and real estate.
Similarly, KIRA Network is also there taking the industry a step ahead by allowing its users to stake their tokenized traditional assets to earn rewards. However, as more platforms will seek to make use of real-world assets, it might not be long until conventional financial instruments are universally recognized via the DeFi sector.
