Cathie Wood of ARK Invest Says Decentralized Finance a Threat to All Financial Institutions

ARK Invest founder Cathie Wood says decentralized finance (DeFi) could threaten the supremacy of financial institutions.

In a recent conversation with Miami Herbert Business School, the hedge fund founder discusses the bourgeoning sector’s potential impact on traditional finance.

“The financial revolution is DeFi and really, it’s just taking all the middlemen out of the financial ecosystem. A real threat to all of us… We know that the combination of digital wallets and DeFi is going to hollow out a lot of financial institutions. It may already be [happening] because a lot of lending and saving is taking place on DeFi because it offers lower loan rates and higher saving rates, so that’s a compelling combination.” 

Wood says DeFi is “scaling enormously” and has already had its resilience tested by past market developments. Wood points to DeFi users leveraging Bitcoin (BTC) and Ethereum (ETH) during recent market stumbles as evidence that the DeFi ecosystem is still going strong.

“May of [2021], we had Bitcoin cut in half, Ether cut by more than half. I was waiting for the leverage in the DeFi system to topple it, and it didn’t. And whatever doesn’t kill [these networks] is making them stronger.”

I

Check Price Action



Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox



Follow us on Twitter, Facebook and Telegram



Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/gonin

The post Cathie Wood of ARK Invest Says Decentralized Finance a Threat to All Financial Institutions appeared first on The Daily Hodl.

• Coinsmart. Europe’s Best Bitcoin and Crypto Exchange.
• Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. FREE ACCESS.
• CryptoHawk. Altcoin Radar. Free Trial.
• Source: https://dailyhodl.com/2022/03/08/cathie-wood-of-ark-invest-says-decentralized-finance-a-threat-to-all-financial-institutions/