- Central Bank of Italy has selected Polygon to develop a DeFi project.
- The initiative will empower the banking sector to work with decentralized finance.
- Many Italian banks will participate in the project, including Intesa Sanpaolo, which has more than $1 billion in assets.
In the next six months, the Milano Hub Innovation Center will develop an institutional DeFi ecosystem. The project was initiated by the Italian central bank in collaboration with Polygon Labs and the Israeli company Fireblocks. This was reported by Coindesk, citing an official source.
Cetif Advisory, a subsidiary of Milan-based research center Cetif, will lead the development of the platform. Not only Italian banks, but also asset management companies and dozens of other financial institutions will participate in the project. Key partners include banking group Intesa Sanpaolo, which manages €975 million (more than $1 billion) in assets.
“All conditions must be in place for DeFi to become a secure and open operating environment,” said Imanuel Baharier, general manager of Cetif Advisory.
Securities tokenization is one of the promising areas of blockchain technology. The world’s central banks are working on digital currencies and exploring ways to incorporate blockchain into the existing payment system.
The Bank of America report said tokenization “could change the way value is transferred, settled and stored in every industry,” speeding up transactions, lowering costs and creating a more efficient financial infrastructure.
Algorand previously said it would support the banking and insurance market in Italy.
According to the report, Algorand said it would support the banking sector and the insurance market in Italy.