Summary
TradFi has an unfair advantage with their infrastructure, making them hesitant to move to DeFi. Fintechs, on the other hand, can benefit from owning their own infrastructure by building on top of layer-2s and DeFi, which can lead to more profits, efficiency, and lower operating costs.
Key Points
1. Traditional finance (TradFi) institutions have little interest in moving to decentralized finance (DeFi) due to their existing infrastructure giving them an unfair advantage.
2. Fintech companies, on the other hand, lack their own financial infrastructure and must go through the fees of traditional finance institutions. However, they have distribution and adoption on their side.
3. By building on top of layer-2s and utilizing immutable DeFi technology, fintech companies can own their own infrastructure, increase profits, improve efficiency, and reduce operating costs.