The path from institutional finance (Goldman) to enterprise blockchain (PwC) to the $26B edge of DeFi innovation (Aave) with Ajit Tripathi

Hi Fintech Futurists,

Thinking about how to connect these worlds and different available journeys? Or the timeless risks developing in tranched DeFi that look like mortgage-backed securities? We even touch on hegelian dialectics! Check out our great conversation.

For premium subscribers, a full transcript is provided along with the recording.

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Excerpt

Lex Sokolin:
And then, when we look at DeFi, and what we see is, globally, lots and lots of hackers from scratch, building capital markets machinery, which is like the Linux of capital markets machinery. You can make any exposure you want and package it however you want. I feel like people just have to take a much more forgiving lens here.
 

Ajit Tripathi:
Lex, this is a fascinating topic because I come from the other side, so everything, capital markets, from pricing and risking, to some of the most exotic derivatives the world has ever seen in Tokyo. I come from the other side and for me, it was really frustrating that everyone in fintech were either doing payments or doing some kind of mobile app, not really changing much, if you ask me and I know you'll disagree with this, but it has always been very frustrating for me that the core capital markets infrastructure has remained unimpacted, more or less, by this whole fintech revolution and nobody has tried in the traditional, and I'm already saying traditional because it has been 10 years, nobody has even tried to revive the backend infrastructure. People are building it, yeah people are building apps, people haven't really tried to see how capital is distributed? How is wealth created?

How do we allocate capital to applications far more efficiently? How do we make capital more efficient? How do we take the assets for the real world, whether gaming or art or whatever and how do we capture this? Finance doesn't exist in isolation. Capital markets make value, enable value to be monetized, distributed at scale and directed to relatively more efficient uses, and I think Joe Lubin saw this coming along ahead of most of us. Back in 2016, he was saying things like, Ethereum will help capital be directed to much more efficient uses, analog capital and so on. I didn't see that coming and for me, what DeFi really does is it starts to compliment fintech, it starts to build this whole backend infrastructure, the back office, the financial instrument creation, the lending, the market makers, the risk taking through derivative exchanges.

Disclaimer here — this newsletter does not provide investment advice and represents solely the views and opinions of FINTECH BLUEPRINT LTD.

Contributors: Lex, Laurence, Matt, Farhad, Mike, Daniella

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