Bitcoin
Bitcoin (BTC)
$64,101.00 3.31148
Bitcoin price
Ethereum
Ethereum (ETH)
$3,061.97 2.25852
Ethereum price
BNB
BNB (BNB)
$561.41 3.03394
BNB price
Solana
Solana (SOL)
$143.49 3.61324
Solana price
XRP
XRP (XRP)
$0.5137310 5.89287
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000231 5.58061
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000052 4.68585
Pepe price
Bonk
Bonk (BONK)
$0.0000151 6.26591
Bonk price
Bitcoin
Bitcoin (BTC)
$64,101.00 3.31148
Bitcoin price
Ethereum
Ethereum (ETH)
$3,061.97 2.25852
Ethereum price
BNB
BNB (BNB)
$561.41 3.03394
BNB price
Solana
Solana (SOL)
$143.49 3.61324
Solana price
XRP
XRP (XRP)
$0.5137310 5.89287
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000231 5.58061
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000052 4.68585
Pepe price
Bonk
Bonk (BONK)
$0.0000151 6.26591
Bonk price
Bitcoin
Bitcoin (BTC)
$64,101.00 3.31148
Bitcoin price
Ethereum
Ethereum (ETH)
$3,061.97 2.25852
Ethereum price
BNB
BNB (BNB)
$561.41 3.03394
BNB price
Solana
Solana (SOL)
$143.49 3.61324
Solana price
XRP
XRP (XRP)
$0.5137310 5.89287
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000231 5.58061
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000052 4.68585
Pepe price
Bonk
Bonk (BONK)
$0.0000151 6.26591
Bonk price
Bitcoin
Bitcoin (BTC)
$64,101.00 3.31148
Bitcoin price
Ethereum
Ethereum (ETH)
$3,061.97 2.25852
Ethereum price
BNB
BNB (BNB)
$561.41 3.03394
BNB price
Solana
Solana (SOL)
$143.49 3.61324
Solana price
XRP
XRP (XRP)
$0.5137310 5.89287
XRP price
Shiba Inu
Shiba Inu (SHIB)
$0.0000231 5.58061
Shiba Inu price
Pepe
Pepe (PEPE)
$0.0000052 4.68585
Pepe price
Bonk
Bonk (BONK)
$0.0000151 6.26591
Bonk price
SirWin
SirWin
SirWin

Citibank Demystifies MakerDAO and DeFi for Fund Managers 

News
Citibank Demystifies MakerDAO and DeFi for Fund Managers 

In the latest issue of Citibank’s Global Perspective and Solutions (Citi GPS) entitled Future of Money: Crypto, CBDCs and 21st Century Cash, the bank points its searchlight on MakerDAO (MKR) and the importance of decentralized finance (DeFi). Citibank is selling off its retail banking service in 12 countries and it appears the bank is looking to venture into the world of digital assets management.

Citibank Enlightens Fund Managers on DeFi

Citibank, the consumer division of financial services multinational Citigroup, announced on April 16, 2021, that it is selling off its retail banking business in India and 12 other nations, in a bid to focus more on its wealth management business.

If the latest tweet by Twitter user @asiahodl is anything to go by, it appears the 209-year-old lender is looking to start playing an active role in the rapidly evolving cryptocurrency ecosystem which is now a hot cake for forward-thinking institutional investors.

As seen in @asiahodl’s Twitter screenshot of Citibank’s Global Perspective and Solutions (Citi GPS) report entitled “Future of Money: Crypto, CBDCs and 21st Century Cash,” the financial institution explains the workings of MakerDAO and the benefits of decentralized finance (DeFi). 

“Maker can be thought of as a digital pawnshop, where users post something that is already valuable in exchange for a cash loan. If they repay that loan with the required interest, they get their asset back. If they default, or if the collateral value falls below a predefined threshold, the collateral is automatically liquidated,” Citibank explained.

Decentralized Finance to Upend Traditional Systems 

That’s not all, Citibank also pointed its searchlight on the importance of decentralized finance over traditional financial systems, stating categorically that DeFi’s openness allows for “greater innovation and competition,” while fostering interoperability by making it possible for “any user to move capital seamlessly between Maker, Compound, Uniswap and UMA in minutes,” in a cost-efficient way.

The bank also highlighted other key benefits of DeFi, including the elimination of third parties, transparency, and programmability, amongst others.

At a time when heavyweight lenders such as HSBC have entirely shut their doors and mind against anything related to bitcoin and other cryptocurrencies, Citibank’s report shows the bank fully understands the importance of cryptocurrencies and maybe a hint that the latter is looking to latch onto the crypto bandwagon in one way or the other.

In a separate report, Citibank also predicts a future where privately-issued stablecoins will disrupt the stability of commercial banking and the process of credit creation.

“The commercial banking system and fintech could be caught in the crossfire of a battle between CBDCs and privately issued stablecoins for monetary supremacy. This competition for deposits and payment services from two entirely new fronts could seriously impact the financial stability of the banking system and the process of credit creation,” it declared.

Indeed, bitcoin,blockchain-based stablecoins and some altcoins have come to stay! And forward-thinking lenders like Citibank, Goldman Sachs and a few others are already preparing themselves for the future. 

At press time, the DeFi industry is worth $58.05 billion in terms of total value locked, while the combined market cap of the cryptocurrency market sits at $2.18 trillion.

Follow Us on Google News