Ripple is positioning itself for a substantial leap in the world of Decentralized Finance (DeFi) in 2024, as revealed during the Singapore Fintech Festival and discussed in a recent report.
At the event, Ripple highlighted the significance of compliance as a potential game-changing factor for the DeFi landscape. The Elevandi Insights Forum, hosted by Ripple and TRM Labs, was pivotal in bringing together regulators and industry representatives.
Read Also: Ripple Co-Founder Chris Larsen Hacked of 213 Million XRP: Details
The roundtable discussions revolved around key proposals for enhancing the DeFi ecosystem. Participants suggested that DeFi could derive significant advantages from establishing a shared definition, fostering increased data exchange among regulatory regimes, and incorporating compliance protocols through smart contracts.
Additionally, there was a consensus on the importance of “compliance by design,” acknowledging the borderless nature of DeFi and its potential to introduce regulatory arbitrage opportunities.
The ongoing dialogue regarding the future of DeFi showed the necessity of aligning regulatory frameworks with the evolving landscape of DeFi systems. Ripple’s emphasis on compliance as a potential breakthrough aligns with the increasing recognition of regulatory considerations in the DeFi space.
A Breakout Year for DeFi
In highlighting the broader context, experts are anticipating a breakout year for DeFi in 2024. Factors contributing to this optimistic outlook include the continual tokenization of real-world assets and the growing adoption of blockchain and cryptocurrency on a global scale.
Ripple emphasized the active engagement of key regulatory bodies, such as the International Organization of Securities Commissions (IOSCO) and the Monetary Authority of Singapore (MAS), in preliminary discussions on the trajectory of DeFi.
This global recognition and discourse indicate a shift towards acknowledging and addressing the impact of DeFi at a regulatory level.
The conversation extended to countries without well-established cryptocurrency regulatory frameworks, including the United States. Notably, the progress made in this regard was evident through the Commodity Futures Trading Commission’s (CFTC) Decentralized Finance report.
Ripple’s President, Monica Long, views this as a promising start, considering it a contributing factor to the potential breakthrough of pioneering compliance for DeFi in 2024. This progress signifies a maturing regulatory landscape that could facilitate the responsible growth of DeFi platforms.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Ripple Makes Strategic Hiring In Preparation For XRP ETF
More DeFi Wins
The Automated Market Maker (AMM) amendment’s approval within the week was a significant milestone within the DeFi ecosystem. This amendment introduces automated market maker capabilities to XRP Ledger (XRPL), marking a substantial advancement for the blockchain.
The success of this amendment indicates a growing interest and support for DeFi functionalities among XRP and XRPL users, contributing to the broader narrative of the transformative potential of decentralized finance.
Follow us on Twitter, Facebook, Telegram, and Google News
