The Rise of Decentralized Finance Over Centralized Systems

The Shift from CeFi to DeFi

The financial landscape is witnessing a significant transformation, as decentralized finance (DeFi) gains prominence over centralized finance (CeFi). Once dominated by centralized entities, CeFi's trust has been eroded following the collapse of major organizations like FTX, Prime Trust, and Celsius. This shift has prompted users, including traders and asset managers, to recognize the benefits of self-custody and seek out advanced services in the DeFi space.

The Importance of Self-Custody

The downfall of these centralized giants highlighted the risks associated with traditional finance systems, leading to an increased demand for self-custody solutions. Users now prioritize control over their assets, which DeFi platforms offer by design. This newfound awareness has accelerated the migration towards decentralized platforms, where users can manage their assets more securely and independently.

Velvet Capital's Contribution

Supported by Binance Labs, Velvet Capital is at the forefront of this DeFi revolution. It provides a comprehensive infrastructure for digital asset management, enabling operations to be conducted fully on-chain. This innovation significantly reduces barriers to entry for emerging fund managers, democratizing access to advanced financial tools.

Empowering Fund Managers

Velvet Capital's platform allows individuals of varying expertise levels to create and manage on-chain funds and structured products effortlessly. By simplifying these processes, the platform empowers a broader range of participants to engage in sophisticated financial activities without the complexity traditionally associated with such tasks.

Conclusion

The landscape of finance is evolving, with DeFi offering a viable alternative to traditional CeFi systems. As more users transition towards decentralized platforms, the focus on self-custody and advanced asset management solutions continues to grow. Velvet Capital exemplifies this shift by providing accessible tools that support the burgeoning DeFi ecosystem.