Finance is headed for a decentralized future without banks: Bernstein | coindesk JAPAN | Coindesk Japan

Investment firm Bernstein said in a March 10 research report that the future of finance will be one without banks. Banks will continue to exist, but in their role as “old wealth custodians,” he said.

“New wealth creation and innovation in financial services will move into the world of new financial apps on the Ethereum ecosystem,” said analysts Gautam Chhugani and Manus Agrawal. writing.

Efforts are underway to revive decentralized finance (DeFi), which will be “a much more sustainable, scalable, transparent and improved token economy,” the report said. DeFi is a collective term for various financial applications that run on the blockchain.

Bernstein estimates that by 2028, unbanked DeFi will have $40 billion in sales and $1 trillion in total assets from the current $65 billion. 136.8 trillion yen). In addition, due to rapid spread, it is predicted that the asset size will grow to 5 trillion dollars (about 684 trillion yen) in the next 10 years.

The next generation of DeFi will be built on a scalable Layer 2 that reduces transaction costs by 95%, offering products that generate real revenues and sustainable yields, independent of token incentives, the report said. ing.

Layer 2 refers to a separate blockchain that builds on top of the Layer 1 chain and reduces bottlenecks with scaling and data. Layer 1 is the base layer or underlying infrastructure of the blockchain.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: Finance Is Headed Toward Bank-Free, Decentralized Future: Bernstein