Defi may now be used by multibillion-dollar hedge funds thanks to MetaMask’s institutional offering.
It is the goal of ConsenSys to encourage large financial institutions to enter the field of decentralized finance — and the company believes MetaMask Institutional may serve as a bridge for them to do this.
In contrast to MetaMask, the Defi wallet that has millions of monthly users, MetaMask Institutional (MMI) is a new initiative within ConsenSys that aims to provide access to Defi to academic institutions. Customers include a number of important multibillion-dollar crypto-native and traditional funds, according to Johann Bornman, the initiative’s product head.
Larger investment firms are interested in Defi because it offers the possibility of achieving greater interest rates through the use of lending protocols such as Aave or Compound.
On the latest episode of The Scoop podcast, Bornman discusses how some of his clients are utilizing yield funds and yield farming tactics to increase their profits. When you look at the main hedge funds and pension funds you mentioned, as well as some of the larger crypto funds, you will see that they are dipping their toes into the industry on average.
Bornman went on to say: “And this may entail minting or lending assets on Compound and Aave, as well as employing some of the most well-known techniques in the space,” says the author.
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