White Paper – Bridging the TradFi-DeFi Gap: The Future of Finance Depends on Traditional Trust and Regulation
This White Paper is the first in a 3-part series exploring the economic potential that lies behind the widespread adoption of DLT and digital assets, and the practical and legal requirements necessary to make it happen. In "Bridging the TradFi-DeFi Gap: The Future of Finance Depends on Traditional Trust and Regulation", we consider the centrality of trust to the safe evolution of digital asset markets through key historical parallels, the limitations of code, necessary regulatory developments and the transformative potential of tokenisation.
Trust forms the foundation of every market, underpinning confidence and stability in asset ownership and trade. While blockchain’s immutability has transformed transaction security, technology alone is not enough—true trust requires legal certainty and regulatory oversight. This white paper explores how bridging trust mechanisms from traditional finance (TradFi) with the innovations of decentralized finance (DeFi) can drive market efficiency and stability.
Drawing parallels from historical financial developments, we highlight lessons that can guide today’s digital markets, stressing the importance of legal recognition and resilient infrastructure. As tokenization reshapes asset ownership and investment, it promises more inclusive and liquid markets, paving the way for a truly digital economy.