Technologia rozproszonych rejestrów (DLT), która stanowi fundament Internetu Wartości (IoV), przekształca współczesne rynki pożyczkowe. Protokoły pożyczkowe, będące kluczowym komponentem zdecentralizowanych finansów (DeFi), oferują bardziej elastyczne narzędzia alokacji kapitału niż tradycyjne struktury finansowe. Protokoły DeFi, takie jak Compound, Maker i Aave, odpowiadają na wyzwania napotykane przez klasyczne rynki pożyczkowe, w szczególności banki i scentralizowane platformy pożyczkowe. Przedstawimy także szczegółowy opis mechanizmów działania tych protokołów, z uwzględnieniem ich innowacyjnych podejść do zarządzania ryzykiem oraz zabezpieczeniami. Pomimo swojej innowacyjności protokoły DeFi wciąż wykazują zależność od tradycyjnych systemów finansowych, co wskazuje na złożone relacje między tymi dwoma sektorami. Distributed Ledger Technology (DLT), which forms the foundation of the Internet of Value (IoV), is transforming modern lending markets. Lending protocols, a key component of decentralized finance (DeFi), offer more flexible capital allocation tools compared to traditional financial structures. DeFi protocols, such as Compound, Maker, and Aave, address challenges faced by conventional lending markets, particularly banks and centralized lending platforms. This paper also provides a detailed description of how these protocols operate, highlighting their innovative approaches to risk management and collateralization. Despite their innovation, DeFi protocols still exhibit dependence on traditional financial systems, illustrating the complex relationships between these two sectors.
The emergence of Decentralized Finance (DeFi) has introduced a paradigm shift in global financial intermediation, challenging traditional banking systems with transparent, algorithm-driven, and blockchain-based financial services. As institutional investors and banks navigate increasingly complex cross-jurisdictional regulatory environments, DeFi presents an opportunity to reimagine asset securitization through decentralized, programmable frameworks. This paper explores the integration of DeFi protocols into institutional asset securitization, focusing on how smart contracts, tokenization, and decentralized liquidity pools can streamline processes, enhance transparency, and reduce reliance on intermediaries across disparate legal and regulatory jurisdictions. At a broader level, the study outlines the limitations of conventional securitization—such as opacity, time lags, and fragmentation—especially in multinational banking ecosystems. It then narrows in on how DeFi tools like automated market makers (AMMs), decentralized exchanges (DEXs), and overcollateralized lending protocols can be adapted to structure, issue, and trade tokenized asset-backed securities (ABS). Particular attention is paid to the challenges of legal enforceability, compliance, and interoperability between blockchain platforms and regulatory frameworks. Case scenarios and pilot initiatives are analyzed to demonstrate the feasibility of decentralized securitization in cross-border finance, including synthetic credit instruments and on-chain risk analytics. The paper further examines how oracles and compliance layers (e.g., KYC/AML-integrated smart contracts) can reconcile DeFi's permissionless nature with institutional governance standards. The findings support a hybrid finance future, where regulated entities harness DeFi infrastructure for secure, compliant, and efficient asset securitization. Policy recommendations are offered to foster collaboration between regulators, financial institutions, and protocol developers in building trust-minimized, scalable, and cross-jurisdictionally aligned financial ecosystems.
Heike Joebges, Hansjörg Herr, Christian Kellermann
Abstract Crypto assets’ partial money-like use promotes toxic developments in the financial system. Even though crypto assets might be regarded as close substitutes to traditional money, we show that they lack important functions of money. Traditional fiat money requires several interacting institutions to stabilize its value and regulate its use. In our analysis, we elaborate on the risks associated with the difficulty of setting up regulatory institutions in the crypto sphere and the likelihood of periods of high volatility as well as their repercussions on the traditional financial system due to reciprocal integration. The shift of banking functions into the unregulated area of decentralized finance triggers a new quality of instability in the global financial system with an increasing probability of effects on the real economy. Regulation of crypto assets remains an urgent issue.
Cryptocurrency has become more popular in the awareness of individuals, corporations, and financial institutions. The thesis will examine the acceptance of the cryptocurrency market by stakeholders in the economy. The thesis will also discuss the impacts of the cryptocurrency market on the global financial system by analyzing some countries’ perceptions, contributing to the evidence that the cryptocurrency market trend is growing. Published papers, cryptocurrency documents, and government reports will be the main sources. Qualitative and quantitative methods will be included in the thesis in order to increase the thesis’s points. By using the analysis and synthesis method, the thesis will provide a detailed and more comprehensive view of the cryptocurrency market. The history of currencies and forms of payment will also be discussed in order to show the opportunities of cryptocurrencies. A more realistic view of cryptocurrencies’ current trend will result, so stakeholders can take appropriate actions and approaches when participating in the market.
Jan 1, 2025·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Thousands of cryptocurrency coins and tokens have been introduced in recent years, with each purporting to offer a unique take on disrupting traditional financial instruments. Most fail to attract significant investment, but some grow quite valuable for at least a short time. This paper focuses on so-called "crypto unicorns'', which reach a market capitalization of at least $1 billion at some point during their lifetimes. 37 coins and 139 tokens have reached unicorn status. However, only 15 coins and 35 tokens retain market capitalizations exceeding $1 billion at end of our study, with 6 coins and 31 tokens falling below $100 million. We empirically examine the factors that influence the relative success or failure of crypto unicorns. Using regression analysis, we find that bitcoin price, the type of service offered by the coin or token, having an ICO and social media activity all affect success.
Minh Hong Nguyen, Binh Nguyen Thanh, Huy Pham, Thi Thu Tra Pham
Decentralized lending in the DeFi ecosystem mirrors traditional financial intermediation but poses significant risks, particularly funding liquidity risk, due to the volatility and composbility of digital assets, high leverage, and the absence of regulatory protections. This study applies traditional financial intermediation theories to DeFi lending and empirically test which internal factors such as interest rates and user market power, as well as external factors like the USD Index, influence funding liquidity risk in DeFi lending. Analyzing high-frequency blockchain data using the ARDL model and a novel dynamic ARDL simulation from major pools such as Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH), the research finds that current algorithmic interest rate models fail to function as effective self-stabilization mechanisms. Additionally, lower deposit concentration in these pools may exacerbate, rather than mitigate, funding liquidity risk.
This paper intends to examine the existence of riba elements (interest) in the products of cryptocurrency exchange companies locally in Malaysia and the international. Two of the chosen international cryptocurrency exchange companies, namely Huobi and KuCoin, and one local company, Luno Malaysia Sdn. Bhd., were analyzed based on their websites and applications. It was found that riba exist in the products offered by international cryptocurrency exchange companies, specifically crypto loans, and lending. Meanwhile, the local one does not offer a product that generates riba. It can be concluded the two products that generate riba seem to be mirroring foreign exchange trading, which comprises leverage and margin in loans and lending. Hence, it is suggested not to subscribe to lending and loans products offered by international cryptocurrency exchange companies. This study implies for Muslim investors, who deal with cryptocurrency. It is recommended to do future research on awareness of riba in the products of cryptocurrency exchanges among Muslim investors.
This chapter delves into the intricate world of 'ICOnomics', the economics underpinning Initial Coin Offerings (ICOs). We explore the evolution of ICOs, beginning from their rudimentary start in 2013-2014 to the more sophisticated, multimillion-dollar campaigns we see today. The analysis investigates the processes of ICOs, highlighting the importance of a comprehensive White Paper, effective marketing strategies, and the role of bounty programs. It assesses the design and timing of token sales, examining factors such as token distribution and pricing that influence an ICO's success. We delve into the economics of tokens, scrutinizing token types, inflation, and liquidity. Lastly, the chapter underscores the critical role of smart contracts, particularly those on Ethereum, in automating and securing ICO transactions. The chapter seeks to shed light on the success factors of ICOs and their continued evolution.
De-banking is the closure of banking facilities by a bank for reasons such as a risk of money laundering. De-banking the Australian Cryptocurrency Exchange (‘Crypto Exchange’) industry could mean that Australian banks fall foul of competition law. In 2021, an Australian Senate inquiry investigated how to regulate cryptocurrencies, including considering de-banking. This article outlines a possible system that reduces the risk to banks of providing banking services to the Australian Crypto Exchange industry. Regulators should continue to adopt a collaborative market governance approach, working with cryptocurrency financial technologies to survey Crypto Exchange operating models. Then they should create an operating model licensing regime and updated Crypto Exchange-specific anti-money laundering (‘AML’) compliance frameworks. That regime would differentiate both centralised and decentralised; and custodian and non-custodian Crypto Exchanges, streamlining this licensing regime for banks. An AML-compliant self-certification system for Crypto Exchanges unable to be licensed is another suggestion. On 20 October 2021, the final Senate Inquiry Report also recommended a similar licensing regime.
Cryptocurrency, which is known as a product of rapidly developing blockchain technology these days, is in high demand by investors, although it has not been officially accepted by central authorities as an asset or a medium of exchange. The cryptocurrency economy is growing rapidly day by day. There are different opinions about cryptocurrencies, which do not have any physical counterpart, are used in an entirely virtual environment, allow interpersonal transactions without the need for intermediaries, and have an encrypted system, as an exchange or investment tool. However, with its growing popularity over the past few years, it has become one of the tools investors are turning to in Turkey as well as worldwide. For this reason, this research is trying to explain the approaches of individual Cryptocurrency investors in Turkey to Cryptocurrency. The data that will form the basis of the study were collected by applying them to 440 individual crypto money investors in Turkey via social media platforms (Facebook, Twitter, Telegram, WhatsApp etc.). The appropriate 396 questionnaires were interpreted with the help of a package program. The outcome of multiple regression analysis applied, It was concluded that the benefit factor, as well as the economic risk factor, have a significant impact on the tendency of investors to invest in cryptocurrencies, and the confidence factor in cryptocurrency investors and concern about the economics and cryptocurrencies has not significantly affected the tendency to invest in cryptocurrencies.
Kriptovalute se smatraju vrstom digitalne valute koja posjeduje sve karakteristike običnog novca, tj. valute. Jedina razlika između prave valute i kriptovalute je ta što iza kriptovalute ne stoji nikakav posrednik dok iza novca najčešće stoji banka ili država. Ne postoje u fizičkom obliku kao novac, već samo u elektronskom obliku. Svoju sigurnost, kontrolu izbacivanja beskonačnih količina kriptovaluta osiguravaju kroz kriptografiju. Kriptovalute imaju veliku prednost u odnosu na novac jer garantiraju korisniku privatnost podataka i sigurnost. Nadalje, potencijal kriptovaluta je enorman iz razloga što broj korisnika raste rapidno, a tehnologija koja se koristi je brža, naprednija i sigurnija iz dana u dan. Pristup kriptovalutama je decentraliziran, ne plaćaju se razni troškova održavanja računa kao u bankama i transakcijski troškovi su zaista minimalni. Naravno da kriptovalute nose i rizike i nisu još uvijek prikladne za poduzetnike. Što se tiče turizma, kriptovalute sposobne su zamijeniti novac kao sredstvo razmjene u svakom segmentu turizma i turističkog tržišta.
Shimon Kogan, Igor Makarov, Marina Niessner, Antoinette Schoar
Trading in cryptocurrencies has grown rapidly over the last decade, primarily dominated by retail investors.Using a dataset of 200,000 retail traders from eToro, we show that they have a different model of the underlying price dynamics in cryptocurrencies relative to other assets.Retail traders in our sample are contrarian in stocks and gold, yet the same traders follow a momentum-like strategy in cryptocurrencies.Individual characteristics do not explain the differences in how people trade cryptocurrencies versus stocks, suggesting that our results are orthogonal to differences in investor composition or clientele effects.Furthermore, our findings are not explained by inattention, differences in fees, or preference for lotterylike stocks.We conjecture that retail investors hold a model of cryptocurrency prices, where price changes imply a change in the likelihood of future widespread adoption, which in turn pushes asset prices further in the same direction.
Italy is distinguishing itself as one of the pioneers of crypto art and among its most important ‘producers’. If domestic blockchain technology-based industry is lacking, its applications in the field of art are fuelling a cultural awakening in the country. NFTs are pushing a sector different from the one in which the creative industry traditionally deployed, so much so that it is named ‘Crypto Renaissance’. However, the need undermines this promising opportunity for a clear regulatory framework while waiting for future EU Regulations. However, the MiCAR proposal, in its current version, excludes from its scope NFTs, leaving space for the Member States. How Italy could use this space to create a market for NFTs in Italy by reviving the lustre of the past and taking advantage of the technology’s development opportunities for the future is yet to be seen.
The dissertation examined the effect of cryptocurrencies on the portfolio risk-adjusted returns of traditional and alternative investments using daily arithmetic returns from August 2015 to October 2018 of traditional assets (South African stocks, bonds, currencies), alternative assets (commodities, South African real estate) and cryptocurrencies (Cryptocurrency index (CRIX) and ten other individual cryptocurrencies). This is worth investigating as cryptocurrencies have been performing well while the listed equities in South Africa and most alternative investments have been underperforming (Srilakshmi & Karpagam, 2017). The mean-variance analysis, the Sharpe ratio, the conditional value-at-risk (CVaR) and the mean-variance spanning techniques were employed to analyse the data. The spanning test carried out was the multivariate ordinary least squares (OLS) regression Wald test. The research findings showed that the inclusion of cryptocurrencies in a portfolio of investments improves the efficient frontier of the portfolio of investments and the portfolio of investments risk-adjusted returns. Moreover, the findings suggested that cryptocurrencies are good portfolio diversification assets. However, investments in cryptocurrencies should be made with caution as the risks of investments are high in relation to traditional and alternative investments. The findings of this study advocate for individual and institutional investors to include cryptocurrencies within their South African portfolio of traditional and alternative investments.
Objectives Smart e-Forms are a new form of technology that converts complex paperwork to digital forms in an enterprise setting. In the context of the rapidly changing communication channels brought by the move toward a digital innovation environment in the financial industry, this paper examines a smart e-Form solution that can aid effective business communication. Methods Financial services using smart e-Forms are developing multilaterally with the use of electronic documents in both face-to-face and non-face-to-face channels. The electronic document system for enhancing competitiveness in face-to-face environments includes PPR (paperless and process reconstruction) and tablet banking systems, while the distance contract system through mobile banking can be utilized in non-face-to-face environments. Results As a functional document format that includes business logic, smart e-Forms allow various types of data input such as photos, voice recordings, barcode scanning, and e-Signatures through the use of smart devices. This technology has been utilized in implementing paperless services, tablet banking, and distance contract systems for a number of financial institutions, and e-Form technology is being optimized for the latest mobile devices in response to the demands of the financial market. Conclusions The rapid development of smart e-Form technology has played a major role in innovation in the financial sector. This technology improves customer convenience and work efficiency for a diversified financial environment, and the e-Form-based financial service system is becoming more competitive in various ways to lead the Fourth Industrial Revolution.
Globalization and the changes that have affected the world economy conditioned the development of new models of thinking, investing, trading and payment methods in the world economy. The end of XX and beginning of the XXI century was marked by rapid technological progress, which has not bypassed any economic sector, and all households have experienced the change. Cryptocurrencies represent a new model of trade and payments, but also a way of making some form of earnings. It is a form of property that is used as a digital asset exchange using cryptographic algorithms for mining new values, but also as a way of ensuring the security of transactions in a given system. It is still early for assessments. However, the future might show what kind of impact would this kind of payment have, as well as its impact on tourism development.