• The Bank of Italy announced a partnership with the Ethereum scaling team Polygon and crypto infrastructure provider Fireblocks to initiate a pilot program aimed at establishing a regulated platform for “institutional DeFi”.
• This collaboration sets a landmark as it involves a G7 Central Bank, financial regulators, and associations of banks working together on a large-scale tokenized asset initiative.
• The project will be developed in conjunction with Milano Hub, the innovation center of Italy’s central bank.
Bank of Italy Partners With Polygon and Fireblocks
The Bank of Italy has recently announced its partnership with the Ethereum scaling team Polygon and crypto infrastructure provider Fireblocks to launch an innovative pilot program that would provide a regulated platform for “institutional DeFi”. This landmark collaboration involves G7 Central Banks, financial regulators, and associations of banks who are all coming together to work on this large-scale tokenized asset initiative.
Milano Hub Involved in Project
The project is being developed in conjunction with Milano Hub – the innovation center of Italy’s central bank. It is excited to explore the potential of blockchain technology and the DeFi sector despite recent negative sentiment surrounding it.
Creating Regulated Environment For Security Token Trading
The pilot program aims to create a regulated environment for security token trading while also exploring different designs for the same. Major financial institutions still express interest in blockchain technology even amidst global crackdowns, which shows that they believe in its potential future applications. To further support this belief, Italy’s 2023 budget introduced capital gains tax on crypto profits at 26%.
Development Support Starting Later This Month
Participants will receive six weeks worth of mentorship from Milano Hub which includes seminars, events, conferences with experts in banking, finance, and regulatory matters. Development support for selected projects under this partnership is set to begin later this month.
Conclusion
This milestone collaboration between major players such as Bank of Italy, Polygon Labs and Fireblocks highlights how important blockchain technology can be when used correctly for good causes such as providing inclusive and transparent financial services through decentralized protocols like DeFi platforms.