In a bid to attract more institutional investors to the decentralized finance (DeFi) space, Etonec has partnered with Lumina DEX to create a permissioned pool. The pool will leverage zero-knowledge technology to enable a compliant liquidity pool market that aligns with anti-money laundering (AML) regulations, according to Jonathan Knoll, co-Founder and head of strategy at Etonec. In an interview with CoinDesk, Knoll expressed optimism for the potential of the partnership to propel growth in the DeFi market.
The incorporation of zero-knowledge technology will significantly enhance the security of the pool and improve privacy for users. In essence, the approach allows parties to prove that specific information without revealing the underlying data. By leveraging this technology, Etonec’s partnership with Lumina DEX aims to build a more secure yet accessible gateway for institutional investors to tap into the DeFi ecosystem.
Interestingly, the partnership aligns with recent efforts by regulators to create more robust frameworks for DeFi. Earlier this year, the Financial Action Task Force (FATF) proposed expanded AML regulations for virtual assets. Etonec’s partnership with Lumina DEX aligns with these regulatory proposals, paving the way for more adoption of DeFi among institutional investors.
Notably, this partnership offers a unique opportunity for DeFi to optimize growth while staying compliant with regulatory norms. As such, it could potentially mark the beginning of a new era for DeFi, with institutional investors being brought into the fold.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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