October 2022


Cryptocurrencies and Decentralized Finance

State Street LIVE: Research Retreat offers a wide range of academic expertise and timely market insights.

The fast-growing decentralized finance (DeFi) system aims to build a new financial architecture that can eliminate the need for traditional intermediaries and reduce rents in the financial sector — but it also generates formidable challenges for market participants and regulators. The reduction of rents, and who will benefit from the new system, will significantly depend on how the ecosystem will be regulated. If regulators wait too long, cryptocurrencies and DeFi applications could become too big to regulate. Antoinette Schoar, Stewart C. Myers-Horn family professor of finance, MIT Sloan School of Management, and academic partner at State Street Associates, discusses the mechanics behind DeFi, and lays out potential benefits and challenges of the new system.

Stay Updated

Please send me State Street’s latest Insights.