The Bank of Italy’s Milano Hub, center for innovations in finance, is working on the development of an ‘Institutional DeFi’ project.
The initiative will be led by Cetif Advisory involving DeFi’s leading players, Polygon Labs and crypto infrastructure provider – Fireblocks, also joined by tech developer Reply, legal consultant Linklaters along with web3 studio DVRS.
This project aims to help traditional finance entities across the country including banks, asset managers and other financial institutions. It will help these institutions to experiment with security tokens and utilize DeFi tactics in a regulated manner.
“We believe it is vitally important to create the conditions for DeFi to become a safe and open operating environment for supervised entities as well,” says Imanuel Baharier, general manager of Cetif Advisory, a consultancy group of the Milan university’s Cetif Research Centre.
Intesa Sanpaolo, the largest banking group from the country, has also become a part of the project. It is estimated that Intesa Sanpaolo has over $1 trillion in total assets under management.
The move comes amid several countries exploring and incorporating use cases of blockchain technology for economical advantages.
Recently, Russian president Putin signed a bill to legalize Digital Ruble structure for testing and experimenting.