The global decentralized finance (DeFi) market size was valued at $11.78 billion in 2021. This number is expected to increase as DeFi advances, yet it is still in its infancy. Therefore, a number of banks and traditional financial institutions still tend to be unaware of DeFi’s potential.
While this may be, industry experts within the crypto sector are predicting that decentralized finance will overtake traditional financial institutions in the coming years. For instance, Mike Belshe, CEO and co-founder of BitGo — a digital asset custody provider — told Cointelegraph that he believes DeFi will replace institutions in the next three to four years. Belshe elaborated on this point during an exclusive interview conducted at Activate, which was BitGo’s developer conference that took place in Mountain View, California on Oct. 25, 2022.
Cointelegraph: Why do you think DeFi will replace institutions?
Mike Belshe: I think DeFi will replace institutions based on innovative use cases that we are starting to see today. For example, automated market makers, or AMMs, have a lot of potential for disruption.
While market makers have played a critical role in ensuring markets and exchanges effectively work, markets that move fast like crypto can make it…
