A collaboration means that banks get much-needed support when it comes to modernizing antiquated systems and updating the suite of services that they offer. Meanwhile, DeFi protocols benefit from a usability perspective — accessing the interfaces that most consumers are already accustomed to. Combining the best of both worlds also gives decentralized finance protocols a chance to reach a broader cross-section of customers, including those who may have felt shut out beforehand.
DeFi platforms that partner with a licensed bank can support fiat currencies and digital assets alike — spanning USD, GBP, EUR, CAD, CHF and ETH, Wrapped Bitcoin and stablecoins. Fees can be dramatically reduced, and a more seamless on-ramp from fiat to crypto serves as a much-needed boost for adoption.