Why should CEOs and CFOs care about DeFi? (2024)

Hey folks,

It was an honor to host the DeFi Masterclass, and your enthusiastic participation made it a resounding success.

For those of you who joined us for the masterclass, you've already taken a significant step towards understanding the transformative power of DeFi. We delved into the intricacies of decentralized finance, unraveling its potential and why it's not just a buzzword but a game-changer for the business world.

In case you missed it, click below to have a look:

What is DeFi?

DeFi, short for "decentralized finance," represents a groundbreaking shift in the financial landscape. Unlike traditional finance, which relies on intermediaries like banks and brokers, DeFi operates on decentralized blockchain networks.

At its core, DeFi empowers individuals and businesses by providing direct access to financial services, such as lending, borrowing, trading, and earning interest, without the need for traditional financial institutions. It's a global financial ecosystem that is open, transparent, and accessible to anyone with an internet connection.

But why should CEOs and CFOs, the stewards of corporate finance, care about DeFi?

That's the question we're going to explore in this newsletter.

Projects are building on DeFi and have real cash flows….not vanity metrics

Let’s dive straight into some real-world use cases:

1. Citi Token Services will provide payments, and liquidity to institutional customers

Citigroup has introduced Citi Token Services, a private, permissioned blockchain that offers cross-border payments, liquidity, and automated trade finance solutions to institutional clients. The new services “will integrate tokenized deposits and smart contracts into Citi’s global network.

Citi Treasury and Trade Solutions (TTS), which has banking licenses in over 90 countries, has completed two pilots of the service. It worked with Danish shipping company Maersk and an unnamed canal authority on a program that made instant payments to service providers via smart contracts, reducing transaction processing times from days to minutes. The service replaces bank guarantees and letters of credit.

A second pilot enabled clients to transfer liquidity between Citi branches around the clock, reducing “frictions related to cut off times and gaps in the service window,”

1. Nomura’s Laser Digital Launches Bitcoin Fund For Institutional Investors

Laser Digital Asset Management, a subsidiary of Nomura, has unveiled its Bitcoin Adoption Fund.

This initiative aims to provide institutional investors with a streamlined and efficient gateway into the rapidly evolving digital assets space, potentially positioning itself as one of the most economical and secure investment avenues currently available.

This launch marks just the beginning, as Laser Digital Asset Management has expressed intentions to roll out a broader suite of digital adoption investment tools in the near future.

1. KKR makes its PE fund accessible to individuals via a tokenized fund

KKR has become the latest private fund manager to tap blockchain technology to further open its private equity strategy to individuals.

The firm is making part of its $4 billion Health Care Strategic Growth Fund II, which closed in January, accessible to individual investors through a tokenized fund offered by Securitize on the public blockchain platform Avalanche.

The move, a first for KKR, comes as private fund managers experiment with new ways to expand their footprint to an unconventional class of investors: wealthy individuals.

As we conclude this newsletter, we're excited to announce an exclusive opportunity for C-suite executives like you. Our DeFi training program is designed to equip you and your team with the knowledge and skills needed to harness the full potential of decentralized finance.

In this hands-on training, you'll:

• Gain a deep understanding of the DeFi ecosystem and its impact on corporate finance.
• Explore real-world use cases that demonstrate how DeFi can drive growth, efficiency, and innovation.
• Learn strategies for incorporating DeFi into your organization's financial operations while managing risks effectively.
• Network with industry experts and fellow executives to exchange ideas and best practices.

DeFi is not just a concept; it's a strategic tool that can reshape your company's financial future. Don't miss this opportunity to stay ahead in the ever-evolving world of finance.

To express your interest and receive more information about our upcoming DeFi training for C-suite executives, click the link below and fill out the form:

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