DeFi set to revolutionise global trade

Interest in decentralised finance is growing exponentially, with over $260.9 billion of total value currently locked into DeFi protocols versus $20 billion at the start of the year.

The UAE is making significant strides and fast becoming one of the world’s most blockchain-friendly nations with decentralised finance (DeFi) poised to change the current ways of finance and trade for the better.

The UAE is also working to ensure that proper regulations are in place in order to protect users, according to DeFi experts.

Interest in decentralised finance is growing exponentially, with over $260.9 billion of total value currently locked into DeFi protocols versus $20 billion at the start of the year, says Ahmed bin Sulayem, executive chairman and chief executive officer, DMCC.

Following the launch on Thursday of a special crypto edition of DMCC’s Future of Trade, Sulayem said the DeFi technology is revolutionising financial systems across the world, optimising processes and providing tangible benefits for global trade. “This latest DMCC report closely analyses how we can collectively harness the opportunities presented by DeFi, and what steps we need to take from regulatory and infrastructure perspectives to maximise its impact.”

“It is becoming increasingly clear that DeFi is set to change the current ways of finance and trade for the better. While a few hurdles remain, achieving financial inclusion and democratised yet regulated DeFi protocols is certainly possible,” said Feryal Ahmadi, chief operating officer, DMCC.

“The UAE is a prime example of a jurisdiction that fully supports cryptographic technologies, working with industry leaders to fully understand the technology and make informed policies that support innovation. This is why Dubai is increasingly becoming the destination of choice for many crypto firms looking to scale up their global operations,” said Ahmadi.

The launch of the DMCC Crypto Centre, launched as a partnership between DMCC and CV Labs (a Swiss Venture Capital and Ecosystem firm focused on blockchain), helped usher in an ever-growing number of blockchain/DeFi projects that are flocking to Dubai.

This move was made possible by the signing of a groundbreaking memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) which established a regulatory framework that grants bespoke licenses for blockchain-related businesses.