Chainlink co-founder Sergey Nazarov believes that 2022 will see an increase in enterprises’ adoption of decentralized finance (DeFi).
Nazarov spoke with Solana co-founder Anatoly Yakovenko during a virtual talk at the Solana Breakpoint conference in Lisbon, Portugal, and said:
I expect a number of institutions, banks, and many existing players to want to rebuild their positions.
Specifically, Nazarov said, he envisions the growth of institutional DeFi coming through banks this time around.
I expect a number of things to emerge about DeFi’s revenue through its banks, the purchase of NFTs through an existing marketplace, or their presence on some of the existing Web 2.0 tools.
What’s more, Nazarov predicted that there will be an influx of various guarantees on the chain, which means new markets for chain insurance products.
He also said:
I think the world will eventually realize – perhaps in 2022 – that there is a huge market called DeFi.
Growth behind DeFi:
Nazarov believes that 2022 will be the year of enterprise DeFi, but the DeFi industry is already well underway through 2021.
according to “DeFi Pulse“There is a total of $113 billion locked into the DeFi industry today, up from $26 billion at the beginning of the year.
Nazarov stated that part of this massive increase in TVL can be attributed to PayPal, which made headlines earlier this year when it announced that customers can now buy and sell cryptocurrencies on the platform. He went on to explain:
If PayPal does its research and decides to allow this type of Web 2.0 interaction with crypto, why do you think users will not come to you and also want to interact with DeFi etc.
DeFi and regulation:
The future of DeFi may look bright, according to Nazarov, but there are still plenty of regulatory hurdles in the way.
With its rapid growth in the past year, interest from regulators has also increased.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), is one of those who has repeatedly banged the drums for close regulatory oversight of the DeFi industry arguing that DeFi platforms can host unregistered securities.
Just last month, Gensler said DeFi would “fine badly” without the required protections put in place.
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