Despite the “massive” opportunities for investment banks in the decentralized finance (DeFi) space, banks are not necessarily looking to create their own systems or alternatives to existing DeFi protocols, a business development manager at the house of JP Morgan complaints.
Speaking at a panel discussion on the second day of the crypto research firm MessariMainnet event in New York, Sarah Olsen of the blockchain branch of JPMorgan Onyx, said that finding the “right intersection between private and public infrastructure” will be an important task for the bank in the future.
This argument would suggest that some private infrastructure will be needed as large financial institutions tap into the DeFi space.
Olsen went on to explain that an important job for JPMorgan going forward will be figuring out how it should âleverage public infrastructureâ while adding its own expertise.
“Maybe it’s by KYC [know-your-customer], or maybe it’s through balance sheet capital, but it’s really not us trying to create our own systems or our own alternatives, âthe investment banker said.
She stressed, however, that she is a supporter of open blockchains and publicly accessible protocols.
“I personally believe a lot in public infrastructure,” said Olsen, saying that “if you allow anyone to participate, that’s where the best ideas will come from.”
The banker went on to say that while there are many things banks can do, they just can’t compete with “6 billion people who have access to open networks.”
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