It is quite difficult for the regulated financial institutions to foray into the cryptocurrency and decentralized finance (DeFi) space. To provide a feasible solution to this problem, AllianceBlock and RAMP DEFI have decided to come together to offer a feasible liquidity solution to regulated institutions. This collaboration will help provide a mechanism that can be utilized to unlock the liquidity from the digital assets.
Given that RAMP DEFI is a leading player in the domain of unlocking liquidity from the digital asset by providing “On-ramp” mechanisms, the collaboration between the two companies will help the regulated institutions have more exposure to the DeFi space. This could potentially change the dynamics of the capital market. Many financial experts and analysts believe that this step will attract more regulated players from the capital markets to the cryptocurrency space, and hence, the power balance could shift towards the DeFi in the coming time.
This partnership has a clear-cut objective of developing a mechanism through which conventional assets can be converted into NFTs, and then subsequently, these NFTs will be liquidated to meet the financial requirements for many different purposes, including the investment. AllianceBlock will participate in this process by enabling the conversion of conventional assets into NFTs, which can then be converted into stablecoins liquidity with the help of the RAMP DEFI mechanism.
Top management of both organizations has expressed confidence in this coming together while conveying the strong desire to take the DeFi space to new levels of popularity in the future. This development assumes significance in the wake of the NFTs’ growing popularity, and if this collaboration proves to be successful, we will soon witness the enhanced scope of NFTs outside the DeFi space too.