Bank of Italy Taps Polygon for Institutional DeFi Pilot

G7 Central Bank Wants To Explore Designs For Tokenized Securities

The Bank of Italy has partnered up with Polygon, an Ethereum scaling team, on a pilot program intended to create a regulated platform for “institutional DeFi.”

Polygon Labs will work with Milano Hub, the innovation center of Italy’s central bank, to launch the “Institutional DeFi for Security Token” ecosystem. “DeFi is an innovative financial technology based on decentralized protocols… that aim to replicate existing financial services in an inclusive and transparent manner,” Milano Hub said.

“It’s groundbreaking to see a G7 Central Bank, the regulator, and associations of banks and funds collaborate in this way on a large-scale tokenized asset initiative,” Colin Butler, Global Head of Institutional Capital at Polygon Labs, told The Defiant.

The pilot aims to create a regulated environment for security token trading while exploring different designs for security tokens, and shows that major financial institutions remain interested in the potential of blockchain technology despite the negative sentiment that has surrounded the sector lately. To read entire article click above.