
The financial sector is inching closer to accepting Decentralized Finance (DeFi), offering to solve most issues present with centralized systems.

DeFi is disruptive by nature - it eliminates intermediaries, breaking down barriers associated with traditional finance and making it more cost-effective and accessible to everyone. In fact, [the DeFi market will grow from $23 billion in 2023 to a whopping $48 billion by 2031](https://www.skyquestt.com/sample-request/decentralized-finance-market). 

The next few years will likely prove to be pivotal in terms of mainstream adoption and further progress of this bustling new industry - which is exactly why all participants should be familiar with the latest blockchain trends that are popping up. 

**Why 2024-2025 are crucial for DeFi**
-----------------

DeFI 2024 is truly a sight to behold. The transition from what was once speculative trading to real-world utilization is an indication that the market is maturing and moving towards creating demonstrative value.

Apart from increased adoption, this shift has been supercharged by a wide slew of technological innovations in the field.

One example is the integration of NFTs into DeFi platforms, something that unlocks brand-new opportunities for asset tokenization. Individuals and organizations can use NFTs as collateral in DeFi borrowing and lending, boosting liquidity and dramatically growing market participation in the process.

Still, the biggest reason why the next 15 or so months are crucial is increased regulatory scrutiny. 

At face value, [Markets in Crypto-Assets (MiCA) regulations](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica) (entered into force in June 2023) may seem constrictive. Considering these will govern multiple areas of the industry, including client verification and crypto exchanges, they will ultimately enhance both the security and the transparency of all crypto operations on the EU territory. 

MiCA is aimed at protecting end users and ensuring companies maintain verifiable reserves and uphold transparent audit practices. Naturally, this type of regulation will attract more institutional and corporate investors into the industry, drastically improving the market’s stability. 

**Biggest DeFi trends**
-----------------

Keeping your pulse on DeFi trends 2025 will allow you to find new ways of capitalizing on this growth. Here’s what to look out for:

### 1\. Institutional adoption of DeFi

The increased maturity of [DeFi protocols](https://unchainedcrypto.com/aave-jumps-amidst-new-tokenomics-governance-proposal-two-year-record-in-borrowing/#:~:text=Record%20High%20in%20Borrows&text=Data%20from%20blockchain%20analytics%20firm,the%20start%20of%20the%20year.) and regulated solutions has transformed a once niche environment into one that is attracting the attention of institutionalized investors. With secure transaction services that eliminate doubts about digital asset safety and the development of frameworks and compliance tools, navigating the regulatory landscape is no longer a problem. 

Moreover, the potential for higher returns and attractive interest rates on assets that can provide a stable stream of passive income is another factor in why major operators are flooding to DeFi.

A good example of how institutional DeFi has achieved a new level of simplicity is [Bitlocus](https://bitlocus.com/).

With the Bitlocus DeFi platform, institutions can reap the full benefits of decentralized finance without dealing with security risks or thinking about compliance, while also gaining instant access to trustworthy investment funds. This is partially accomplished by providing users the ability to use fiat, hence, they can leap over all technical obstacles associated with crypto trading.

In other words, DeFi knowledge is not a requirement as all transactions are processed by the platform.

Our Fiat-DeFi Management Platform (FDMP) is targeted to bring traditional deposit investors to DeFi based on better yield and a straightforward user interface. No crypto or DeFi knowledge is needed since the end-user only transacts in fiat assets and all DeFi-based transactions are automatically processed by the Bitlocus platform.

### 2\. Cross-chain interoperability

Cross-chain interoperability is a huge paradigm shift in DeFi. Individual blockchains will no longer be isolated as applications on different chains will easily swap messages and tokens between one another.

This will enable large-scale DeFi operations, boost the individual freedom of users, and most importantly, attract more users into the industry. The reason why is simple - the liquidity will increase and so will the usability of various DeFi solutions. 

Cross-chain interoperability is a work in progress, but there have been many advancements lately. With Bitlocus, for instance, not only does the $BTL token provide cross-chain utility through a partnership with [MELD](https://www.meld.com/), but it also supports cross-chain, non-custodial asset management addressing different blockchain preferences. At the time of writing, six chains are supported, but it’s only a matter of time before new networks are added to the list. 

### 3\. Regulatory developments and compliance

In addition to the aforementioned MiCA initiative in the EU, other regions are following suit. U.S. regulatory bodies are closely monitoring the space, making certain projects comply with current commodities and security laws.

The biggest emphasis of DeFi regulations is, as you would expect, on know-your-customer (KYC) and anti-money laundering (AML). 

There are plenty of challenges surrounding regulatory developments that are directly related to the nature of DeFi. For starters, the technological complexity of blockchain technology is hell for legal oversight simply because there are no centralized points of control. The same can be said about the rapid innovation in the field that makes it hard for regulatory frameworks to catch up. 

Crypto projects need to take a proactive approach to compliance. Bitlocus, for instance, implements a strict AML policy that ensures user protection while also [helping them navigate the intricate legal landscape](https://bitlocus.com/products/crypto-as-a-service). It complies with all the relevant AML obligations through internal measures that mitigate the risk of money laundering or terrorist financing, including identity establishing, monitoring customer activities, risk assessment, and reporting suspicious activities to authorities. 

### 4\. Integration of traditional finance with DeFi

The decentralized finance future may be more centralized than you think. Plenty of [big traditional players](https://www.thestreet.com/crypto/markets/morgan-stanley-is-unleashing-15000-wealth-advisors-to-sell-bitcoin-etfs) are uncovering the potential of tokenization and are open to using blockchain infrastructure. It’s not hard to imagine a world where crypto becomes a new investment asset class that can be utilized as collateral for traditional loans.

In other words, some DeFi principles will become important tools in the traditional finance industry, akin to cloud-based solutions.

On the other end of the spectrum, DeFi protocols are inching closer to traditional finance, bringing stringent controls and risk management practices to the table.

It’s clear that DeFi and traditional approaches to finance are getting more and more intertwined each year. Regardless of where you stand on decentralization, the pioneering technology behind DeFi combined with regulatory frameworks, will most likely mark the future of finance as a whole.

As a trailblazer in DeFi, Bitlocus already bridges the gap between the two worlds with its stringent AML policy and the ability to act as a gateway to high-level investment protocols. Lowering the entry barriers by allowing users to start trading crypto with fiat helps traditional investors avoid the common pitfalls associated with DeFi, thus representing the natural link between the accessibility of traditional finance and the potential of decentralized finance.

**Leading the charge**
-----------------

DeFi for institutions is already gaining an incredible amount of traction. Seeing as projects are placing their attention on cross-chain operability and new regulatory developments, DeFi will become even more welcoming during the year and a half. This means that the projected growth is bound to happen if more and more projects follow suit.

Bitlocus presents a paramount achievement in the world of DeFi, embodying the key DeFi 2024 trends that will influence further developments in this industry. All the latest trends closely align with the approach Bitlocus is promoting, so it’s only natural to assume new players will see it as a positive and rewarding example - ultimately making sure DeFi reaches its maximum potential.


Future of DeFi: Top Trends to Watch in 2024 and 2025

 
Launching crypto-based applications presents a wide range of unique challenges. This is especially true for instances where companies and developers are building solutions from the ground up, using internal resources.

Due to the expertise and development time required, launching an MVP can cost upwards of hundreds of thousands of dollars, barring smaller and mid-size companies from entering the market. 

However, an alternative approach in the form of Crypto-as-a-Service (CaaS), championed by the likes of [Bitlocus](https://bitlocus.com/), can assist in sidestepping these challenges. To demonstrate, we'll use the example of [Fideum](https://www.fideum.com/) (formerly Blockbank), which successfully launched crypto operations in record time with minimal resources.

**About Fideum**
-----------------

Fideum is an all-in-one banking platform focused on simplifying the management of crypto assets by helping users track, trade, and analyze their portfolios. In addition to enabling staking directly through the platform, the current iteration of the platform (built using Bitlocus API) is characterized by state-of-the-art security features.

A one-stop solution for all DeFI activities, Fideum also created its own crypto wallet, thus streamlining access to centralized and decentralized financial options for its users.

**The challenge**
-----------------

The team behind Fideum had a clear vision of their offering from the very start. With a defined road map in relation to the user flow and a well-thought-out UI/UX, they were well aware of the challenges they would face. 

Launching quickly and building a user base was a major part of their agenda, yet, the features for a secure and compliant crypto platform generally require extensive resources. This includes specialized staffing, obtaining licenses, setting up various EMI or bank accounts, integrating wallets, and ensuring KYC/AML compliance.

Projections showed that if Fideum were to launch its solution from scratch, it would require a budget exceeding hundreds of thousands of euros. More concerningly, the time to launch was estimated at anywhere between 6 to 12 months, potentially halting the momentum of the entire project. 

Thus, a fast launch was out of the question, and so was the process of attracting consistent users.

**The solution**
-----------------

As a CaaS provider, Bitlocus offers clients a ready-to-use solution in the form of a comprehensive suite of services delivered via API, such as:

- Specialized staff with expertise in crypto exchanges (developers, compliance experts, and account managers)
- Licensing services
- Fiat on- and off-ramps for depositing/withdrawing fiat currencies (USD, EUR, etc.)
- KYC/AML services
- Solutions for listing on major markets, liquidity, and a matching engine
- Crypto transfers and wallet infrastructure (direct chain integrations and Fireblocks)

Using Bitlocus' existing infrastructure, Fideum was able to develop its solution while also reducing operational costs, saving time on multiple integrations, and dealing with a variety of different compliance setups.

In fact, by working with a single API, the process was drastically simplified, making it possible for even junior developers to set up a brand-new platform.

**The results**
-----------------

By relying on Bitlocus, Fideum was able to accelerate its go-to-market timeline, launching well ahead of schedule without facing any additional challenges. 

Instead of possibly taking up to a year to launch such a complex platform, Fideum shortened the entire developmental roadmap to just two months. This allowed them to test out the full functionality of their solution, while also implementing their business idea in record time, thus supporting continued growth and a more favorable market position. 

On the fiscal side of things, Fideum reported a great increase in its overall ROI by minimizing its development costs. In addition to reaping the rewards of an accelerated launch, the company saved resources on staffing, licensing, consulting, and acquiring tools from multiple providers. 

It’s also worth noting that CaaS providers charge a single monthly fee, thus allowing clients to accurately budget their expenses. This is a stark contrast to in-house development as the expenses tend to spiral out of control due to unanticipated circumstances or more complex budgeting. 

Bitlocus offered ongoing support, assisting Fideum with maintenance and troubleshooting. With guidance that continued after the development process, the clients in this case successfully scaled their operation and expanded list of services.

**Conclusion**
-----------------

By successfully eliminating the major pitfalls of developing crypto-based applications, Bitlocus and similar CaaS providers are a perfect solution for challenging developmental cycles in the blockchain industry. 

Even though plenty of companies are interested in entering the market, their attempts are often boggled down by the reality of the complexities involved in crypto development. The alternative approach that relies on pre-made APIs developed by CaaS providers significantly lowers the entry barrier into the blockchain space.

Ultimately, such an approach can expand the reach of the entire industry, and possibly fuel and support further innovation in the field.


CaaS Case Study: Fideum


Bitlocus, a renowned fiat-to-crypto gateway platform, has recently announced an exciting partnership with [Portals](https://www.portals.org/), a project that is rapidly gaining traction for its innovative approach to technology and art. This collaboration marks a significant milestone, as it combines Bitlocus' robust infrastructure with Portals' unique artistic vision, creating a synergy that promises to revolutionize the digital art and crypto spaces.

**Bridging Cultures Through Technology**
-----------------

Portals are extraordinary art sculptures equipped with advanced technology, offering real-time, unfiltered live streams from various locations around the globe. These sculptures not only serve as pieces of art but also as cultural bridges, connecting people from different parts of the world. Currently, [Portals](https://www.portals.org/) are live in cities like Vilnius, Lublin, Dublin, and New York City, showcasing their global appeal and the power of technology in fostering human connections.

**Empowering Art with Crypto Solutions**
-----------------

Bitlocus is playing a crucial role in this partnership by providing an end-to-end NFT solution for Portals' innovative projects. This includes powering and securing their [NFT auctions](https://auction.portals.org/), which allows artists and enthusiasts to participate in this groundbreaking venture. [The NFT auction](https://auction.portals.org/) enables individuals to become part of this global artwork, further blending the worlds of digital art and blockchain technology.

[The NFT auctions](https://auction.portals.org/) are not just about owning a digital asset; they represent a support system for local artists contributing to these sculptures. Participants receive unique certificates, future artworks with each new Portal opening, and exclusive access to community events and meet-ups. This initiative ensures that every contribution supports and celebrates the artists involved, making the project as much about community building as it is about technological advancement.

**Exclusive Fellowship and Community Engagement**
-----------------

Bitlocus and [Portals](https://www.portals.org/) have also launched an exclusive fellowship program, limited to 4,000 participants. This initiative is designed to foster a dedicated community of art and technology enthusiasts who can participate in special events and receive exclusive benefits. By supporting this fellowship, Bitlocus is not only enhancing its community outreach but also ensuring that Portals' vision reaches a wider, more engaged audience.

**A Look Ahead**
-----------------

The partnership between Bitlocus and Portals is a testament to the potential of combining art with cutting-edge technology. As Bitlocus continues to provide robust crypto-as-a-service solutions, [Portals](https://www.portals.org/) will keep pushing the boundaries of what is possible in the art world. This collaboration represents a promising step towards a future where technology and art coexist harmoniously, enriching the cultural and technological landscapes.

For more updates and to participate in the exciting ventures of Bitlocus and [Portals](https://www.portals.org/), follow their social media channels and join the [auction](https://auction.portals.org/). Stay tuned as these two innovative entities continue to break new ground and bring the world closer together through their creative and technological endeavors.


Bitlocus, a renowned fiat-to-crypto gateway platform, has recently announced an exciting partnership with Portals.

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Future of DeFi: Top Trends to Watch in 2024 and 2025

CaaS Case Study: Fideum

Bitlocus and Portals: A Partnership Bridging Art and Technology