Enterprise DeFi will Legitimize Decentralized Finance with Real-World Investments

Decentralized finance, also known as DeFi, has grown to become one of the biggest trends in the crypto sector. Since 2020, the total value locked (TVL) across DeFi protocols has approached $25 billion.

While impressive, crypto’s DeFi space has also been riddled with a number of scams, which in turn have given many of these decentralized protocols a bad reputation with institutional investors. Although institutional interest in DeFi is increasing, the industry is still largely dominated by retail investors.

Interestingly enough, the rise of DeFi has also given way to “enterprise DeFi,” a trend that some believe will change financial services operations entirely. Kyle Thomas, founder & CEO of Provide — an enterprise middleware vendor — told me during a phone interview that enterprise DeFi represents the democratization of investment in assets that were issued as an output of verifiable enterprise business processes.

“Enterprise DeFi demonstrates the vision of blockchain to democratize finance for institutions and individuals. For example, tokenized invoices are becoming assets that can be purchased by major banks as investments moving forward,” said Thomas.