Ripple, one of the major companies in the cryptocurrency world and the company behind the XRP altcoin, recently hosted a meeting with TRM Labs at the Elevandi Insights Forum during the Singapore Fintech Festival.
The meeting brought together a diverse group of regulators and industry representatives to discuss the future of decentralized finance (DeFi) and the need for clear regulatory guidelines.
According to a report published by Ripple after its meeting, many are predicting that 2024 will be a breakout year for DeFi, thanks to the continued tokenization of real-world assets and the mainstream adoption of blockchain and crypto. However, according to Ripple, achieving this will depend on clear regulatory guidelines.
Decentralized finance, which allows individuals or organizations to transact directly with each other without central institutions, is a rapidly growing sector. According to an analysis by Emergen Research, it is estimated to reach $601 billion in 2032. Although still in its infancy, DeFi has the potential to significantly increase financial inclusion and improve market efficiency by using blockchain solutions for finance, according to the Ripple report.
Ripple President Monica Long expects pioneering compliance for DeFi to be the biggest breakthrough of 2024 and advance blockchain applications in finance. According to Long, the meeting reinforced the need for a “compliance first mindset” and continued collaboration to lay the foundation for a comprehensive global regulatory framework for DeFi.
*This is not investment advice.
