Italian Central Bank Empowers Financial Innovation: Commences DeFi Ecosystem Development


The Bank of Italy’s Milano Hub innovation center has thrown its weight behind an exciting new project, spearheaded by Cetif Advisory, to establish a cutting-edge security token ecosystem within the decentralized finance (DeFi) sector, specifically catering to institutional players.

This innovative project has garnered strong support from various players in the industry, with Cetif Advisory leading the way. Notable participants include Polygon Labs, Fireblocks, Italian banks, and ten other financial institutions. This collective effort underscores collaboration’s importance in driving advancements in the DeFi space.

Expanding the Horizon of Security Tokens

Amidst stiff competition during the Milano Hub’s second call for proposals, this initiative emerged victorious and has now set its priority on expanding the scope of analysis for security tokens in secondary markets. Security tokens represent digitized ownership of real-world assets, holding immense transformative potential for traditional financial systems. Imanuel Baharier, the general manager of Cetif Advisory, has emphasized the need to establish a safe and open operational environment for supervised entities within DeFi, recognizing the significance of secure tokenization.

This project’s primary focus is not on commercialization but on facilitating institutional market participants to navigate the DeFi landscape while adhering to essential regulatory guidelines. The project aims to enhance and evolve Cetif Advisory’s renowned Lionity platform, a critical component of their “institutional-grade automated market maker.”

Guided Support from Milano Hub

Benefitting from the supportive ecosystem of the Milano Hub, Cetif Advisory, originating from the Cetif Research Centre at the Università Cattolica del Sacro Cuore in Milan, will enjoy six months of invaluable backing. This assistance encompasses expert guidance and in-depth regulatory research to propel the project forward. This support officially commenced earlier this month, marking a significant step forward for the initiative.

Within the realm of blockchain technology, securities tokenization is emerging as a prominent trend. According to Citi Global Perspectives & Solutions projections, the market for tokenized securities could grow substantially, reaching a value of $4 trillion to $5 trillion by 2030. Of particular interest, private equity and venture capital sectors are likely to be at the forefront of this transformation, with real estate following closely behind.

The collaborative efforts led by Cetif Advisory in tandem with other industry stakeholders could play a pivotal role in advancing the DeFi ecosystem and expanding the application of tokenization across various sectors. The project’s objectives align closely with the Bank of Italy’s keen interest in exploring the innovative possibility of blockchain technology and its role in tokenized securities.


In conclusion, the Bank of Italy’s Milano Hub has lent its support to a visionary project led by Cetif Advisory, aiming to forge a secure and regulated security token ecosystem within institutional DeFi. This endeavor, characterized by collaboration and strategic partnerships, holds immense promise for revolutionizing traditional financial systems through the power of tokenization. As the trend of securities tokenization gains momentum worldwide, the project signifies the Italian Central Bank’s commitment to embracing blockchain technology’s innovative possibilities in the financial realm. The future of institutional DeFi looks increasingly promising, and this initiative is undoubtedly a key driving force behind this transformative journey.


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