Bank Corporate Trust; an Expansion into Digital Currencies and Defi
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Bank Corporate Trust; an Expansion into Digital Currencies and Defi

Decentralized finance, or DeFi for short, is a financial innovation built on secure online ledgers. This system removes traditional financial institutions' autonomy and gives control back to the users, hence the name "decentralized". Defi systems are built to explicitly dethrone oligarchs and see the steady rise of healthy financial systems governed by fairness and transparency. It means the infrastructure that DeFi provides removes third parties between users that used to control transactions and imposes laws and regulations that often only benefit them at the expense of the users.

 

DeFi eliminates most banks' fees for transactions while using their services. The logic has bothered many users over the years as to why they pay so much to banks who operate their funds, invest them and get a profit which they may not share with the depositor. But, no one establishes a financial institution without making a profit. The need for profiting often becomes overarching, leading financial leaders to develop unfavourable terms and conditions that burden their users.

 

In traditional banks, money is stored in bank accounts, while in DeFi, you have a secure wallet where your digital assets (cryptocurrencies) are kept. You can access your investments anytime, without going through burdensome laws and restrictions. The speed of transactions has also increased, as transactions can happen in seconds, and this is possible because there are no middlemen to umpire between the users. In DeFi, peer-to-peer networks leveraging security protocols, community, and technological tools, transact quickly, without the hitch of having a third party over them.

 

Is it secure?

 

Many have been bothered about the security of DeFi, as they have feared that information can be falsified. Blockchain technology makes it difficult for such instances because the transaction data of all past activities are available for verification. Software, smart contracts, and technologies were developed to make verifying data more accessible and faster.

In summary, Decentralized finance is like centralized finance, only without the centralization and the outrageous bank fees. An aggregate term for projects and protocols that create digital solutions, and marketplaces, that help us view transactions and transacting differently. These DeFi platforms provide ways to save, trade, and transfer assets without traditional banks' limitations and insight into new ways to leverage transactions. Think of DeFi as banks governed by the users and possess unique and profound projects that enable you to access your funds and assets anytime, anywhere, and without the permission of a third party.

 

How is a Bank Corporate Trust being affected by DeFi?

 

For a long time, currencies have been processed digitally without the need for physical fiat money. Sponsors often do transactions online, but in DeFi, the transacted assets are cryptocurrencies. A Bank Corporate Trust is not limited to fiat or currencies. It covers the protection of assets beyond directives, real estate, company shares, investible income etc. the rights or deeds to these assets are given to the trustee who now transacts with these assets on behalf of the grantor.

 

Here are vital ways DeFi is shaping the Corporate Bank Trusts

 

  • One of the first innovations embraced as DeFi expands into Bank Corporate Trusts would be the digitization of assets. Cryptocurrencies are not the only form of assets that can be saved on the blockchain. You can protect any investment or documentation of the proof that you own that asset on the blockchain.

  • The ownership of data would be the user and not the financial institutions. In traditional banking, these data were used to profit the organization, and often the user is unaware. Now, if your data is to be used, you would be incentivized, and your permission would be required. So, maximum data security is guaranteed.

 

  • The investment was made easy without the need for collateral, high-interest rates, or human monitoring. The provision of smart contracts is fulfilled after all the parties involved meet the terms and agreements agreed upon in the contract. This eliminates the need for human effort in monitoring investments and loans.

 

  • DeFi offers its users anonymity because they can only be identified by their unique addresses or codes and not by their real names. This eliminates bias during transactions, protects data, and allows users to experience non-custodial ownership of assets, as the assets are not in the person's name but in a unique code.

 

  • Assets can be assessed anywhere in the world, and users do not have to travel to different locations to evaluate their investments. These transactions also can be done in seconds, saving time and lowering the costs of maintaining these assets and hiring a physical bank corporate trust.

 

Key points

  1. Your assets are protected; you can trade with them and invest as much as you want to because, with DeFi, the user has total autonomy over their assets.

  2. Users don't need to worry about the contribution of third parties.

  3. The user experiences anonymity, which trusts try to bestow by transferring assets to a trustee, but the user still controls the assets here.

  4. Assets are also digitized and can be transacted anywhere in the world.

 

At BancorpTrust, we help corporate institutions and individuals achieve their digital and traditional Trust goals without going through all the difficulties associated with creating and managing a corporate bank trust.

Register your Corporate Bank Trust Company Today

With the experience of over three decades working in the realm of finance, BancorpTrust is a licensed investment bank specialized in establishing Investment banks, offshore banks, Investment Funds, Investment Banking Trusts, Corporate Bank Trusts, Real Estate Funds, Investment Banking Blockchain Trusts, Credit Unions, Capital Trusts,  cryptocurrency exchange, etc., at a competitive price, including your own private label Mobile Banking Platform, your own API, your own SWIFT code, yet without the bureaucratic "red tape"…

 

Our new project Blockchain DigitalCity is an extension to BancorpTrust that aims to give complete autonomy and empowers entrepreneurs like you to operate and live from their exclusive and tax exempt executive villa in the Dominican Republic.

The management team of BancorpTrust has been in this industry since 1990 and has a track record of successful Investment Bank establishments for over 3 decades.

 

For a confidential consultation on how to establish your own Investment Bank or Offshore Bank & Capital Trust, please contact:

 

BANCORPTRUST
Tel. No:             +1-587-430-2692
WhatsApp:      +1-610-994-1639
E-MAIL:  banking@bancorptrust.com
WEB:      www.bancorptrust.com

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