DeFi could become the next big thing in finance

DeFi products remove a lot of the friction that’s present in finance.

DeFi, or decentralized finance, is turning into the most important nascent trend in finance.

The ability to borrow funds, take out loans, deposit funds into a savings account, or trade complex financial products — all that without asking anyone for permission or opening an account anywhere — is quickly gaining traction. The amount of money locked into various DeFi services has recently surpassed $2 billion, according to DeFi Pulse, up from about $1 billion a month ago. But it’s not just about the money — other assets are being sucked into the DeFi ecosystem.

By Stan Schroeder