1inch Co-Founder: DeFi’s Near-Zero Onboarding Can Bank the Unbanked

DeFi’s Edge Over Traditional Finance Decentralized finance (DeFi) could revolutionize financial access with its near-zero onboarding costs, according to Anton Bukov, co-founder of 1inch Network. Speaking at Dutch Blockchain Week in Amsterdam, Bukov said DeFi dramatically outperforms traditional financial institutions when it comes to user acquisition. Onboarding to DeFi literally amounts to zero,” Bukov said. In comparison, he went on, traditional banks pay $100–$300 to verify and onboard each user. Internet banks trim that to around $20–$30, but DeFi trims it down even further to nearly nothing—a smartphone and an internet connection. Unlocking Access for the Unbanked This near or low zero cost is a strong selling point for DeFi in getting 1.4 billion of the unbanked individuals globally under its wing, who are so because of the prohibitive costs and logistical challenges of traditional banking. “No one’s going to invest those hundreds or tens of dollars in them because they will never return to them,” Bukov explained. He maintained that DeFi can address this problem by removing entry barriers entirely. Stablecoins like Tether’s USDT ensure that even individuals in remote or underserved regions can engage with global financial flows. “You can just get a phone, internet connection, and you can exchange your chicken to USDT,” he said. Creating a Global Liquidity Hub Along with financial inclusion, Bukov emphasized how DeFi functions as an increasing world center of liquidity. Crypto, in his view, is turning into an autonomous economic sector, shifting hundreds of billions of dollars on decentralized platforms. This liquidity supports innovation, yield generation, and cross-border capital flows. Bukov urged nations to embrace favorable regulations that allow broader access to DeFi’s benefits. “The more countries trade with each other, the more they succeed. Crypto works the same way,” he said. As internet penetration increases worldwide, DeFi’s cost-efficient infrastructure could prove crucial in democratizing access to finance and global markets.

Source: BTC Pulse