Lex Sokolin, a CoinDesk columnist, is Global Fintech co-head at ConsenSys, a Brooklyn, N.Y.-based blockchain software company. The following is adapted from his Fintech Blueprint newsletter.
This week, I grapple with the concepts of financial centralization and decentralization, anchoring around custody, staking, and DeFi.
On the centralized side, we look at BitGo’s acquisition of Lumina, Coinbase Custody and its similarity to Schwab and Betterment Institutional.
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On the decentralized side, we examine the recent $500 million increase in value within the Compound protocol, as well as the recursive loops that could pose a broader financial risk to the ecosystem.
It is a difficult one for me to untangle, in part because I am not sure for what audience I am writing. Ever since starting to work more deeply in the crypto ecosystem, I’ve come across a very different set of