The financial world has been going through a significant transformation process in recent years. Banks and financial intermediaries, which are at the center of traditional financial systems, are now forced to compete with new generation systems such as decentralized finance (DeFi). This transition between centralized finance (CeFi) and decentralized finance is radically changing how users perform their financial transactions.
Centralized finance refers to traditional systems that are controlled by banks and financial institutions. In this system, transactions are made through institutions such as banks, payment systems and exchanges. However, decentralized finance is transforming this traditional structure by using the opportunities offered by blockchain technology. DeFi allows users to conduct financial transactions directly with each other without intermediary financial institutions.
The world of centralized finance is still quite large. As of 2024, the size of global financial markets is around $400 trillion. This includes large financial institutions such as exchanges, banks, insurance companies and investment funds. However, decentralized finance (DeFi) has increased its growth rate significantly in recent years. The DeFi market is expected to reach $1 trillion by 2025. This growth is a reflection of investors' increasing interest in blockchain-based financial products and cryptocurrencies.
With the widespread use of cryptocurrencies, the world of decentralized finance has emerged as an alternative to traditional financial systems.
Blockchain networks such as Ethereum$ETH , Binance Smart Chain$BNB , and Solana$SOL stand out as platforms that form the basis of the DeFi ecosystem.
However, it is still possible to say that decentralized finance remains small compared to the banking sector worldwide.
For example, while the total market value of Bitcoin is around $ 1 trillion as of 2024, the total reserves of all central banks around the world are over $ 30 trillion.
The new partnership between Chainlink and Mastercard, which was announced recently, aims to close the gap between the world of centralized finance and decentralized finance.
Mastercard's global payment network and Chainlink's secure and transparent blockchain infrastructure combine to provide more than 3 billion payment card holders with direct access to cryptocurrency trading. This agreement stands out as one of the first steps towards the mainstream integration of the decentralized finance world. Now, payment card holders will be able to make direct on-chain transactions using traditional fiat currencies.
Such developments will have a major impact on the shaping of the global financial system. Crypto assets are now going beyond being just an investment tool. Direct access to cryptocurrencies will also enable the digitization of fiat currencies and the integration of crypto assets into our daily lives.
Mastercard's role in this area makes it easier for users to seamlessly transition to the DeFi ecosystem. This collaboration will not only make payment systems faster, cheaper and more secure, but also provide access to financial services for the unbanked masses.
The future reach of these developments to a wider audience could be an important step towards reducing financial inequalities. Today, centralized financial institutions are still inaccessible to many people in the world.
However, the widespread use of decentralized finance will allow the financial system to become more democratized. Greater access to crypto assets and DeFi systems is a very important step for both individual users and the overall structure of the global economy.
For a beautiful future…
