Journal of
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Archive » February 2024 » Finance on the blockchain: perspectives for banks

Finance on the blockchain: perspectives for banks

Alberto Arrigoni, Pietro Azzara, Luca Bellardini, Daniele Previtali
February 2024 - n. 2
Keywords: Banche, finanza, blockchain
Jel codes: G21, G28, G32, E51, F30

Dlt technologies and applications of Decentralized Finance are undergoing rapid growth, and banks are experimenting with various use cases, envisioning attractive potentials for creating new services and products – reaching new customer segments – and optimizing business processes. Regulators and authorities have also opened up to applications of blockchain technologies to ensure that their development does not threaten the financial sector's stability and security. Nevertheless, several emerging risks require increasing collaboration between operators in TradFi, CeFi, DeFi, and regulators. This article analyzes the DeFi phenomenon and discusses its potential connections with traditional financial services provided according to a centralized architecture. It also presents some concrete use cases, with a focus on banking.

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