The Berlin-based cryptocurrency custody firm Finoa is making a new advancement in the field of decentralized finance (DeFi) that could potentially remake the relationship between DeFi and regulatory institutions. Finoa boasts of having license approval from German financial regulator BaFin, which positions it to serve its 300 institutional clients with something no short of innovative – FinoaConnect.
This proprietary wallet integration is about to let its clients access a list of handpicked DeFi platforms and web3 applications, all while enjoying the comforts of blockchain governance scenarios. Having seen a rising demand to integrate decentralized apps into web3 interfaces in its custodial wallets, Finoa saw it as high time to answer this call and upgrade its offering.
Despite the rapidly shifting market and the increasing popularity of off-the-shelf wallet offerings, Finoa chose to walk its own path. In explaining this move, Finoa founder Henrik Gebbing pointed to a significant unique selling point. This isn’t just about any wallet you could possibly think of; it’s one meticulously built for optimal security and transaction integrity over half a decade.
But don’t be too quick to think that this means any kind of decentralized app can be connected to Finoa wallets. The curated set of d’apps reflects a careful selection process. On this distinction, Gebbing states that permissionless DeFi and the whirlwind of DeFi platforms will not have an all-access pass.
The Finoa extension seems to address the hefty concern of regulated institutions who desire to get involved in DeFi, especially lending pools and automated market making, but are wary of knowing exactly who they are trading with. The more buttoned-up DeFi that is emerging incorporates anti-money laundering (AML) measures such as built-in digital identity or lending counterparties whitelisting, putting at ease some of the uncertainty surrounding the practice.
While Finoa remained tight-lipped about its select list of web3 platforms, we’re left to speculate on the type of DeFi it would be willing to deal with. Given the institution-friendly DeFi offerings like Aave Arc, Compound Treasury, and Maple Finance, it wouldn’t be too far a stretch to think that they could make Finoa’s list.
Whatever the final selection of DeFi platforms, this new development is poised to reshape how institutional investors approach DeFi, ensuring they have a secure and regulated option for utilizing these technologies.
Source: Coindesk
