In this article by Mike Cahill, co-founder and CEO of Douro Labs, he argues that the traditional finance (TradFi) sector is ripe for disruption, specifically focusing on equities. Despite growing interest in crypto and its accessibility, a large portion of the world’s population remains excluded from investing in stock shares. This exclusion stems from several factors including limited access to accurate pricing data, exclusive execution venues, and slow settlement processes.
Cahill argues that introducing decentralized technology into three key areas – price, execution, and settlement – will dramatically alter the equity market landscape. He believes that this can empower a wider range of investors across geographical locations by allowing them to access real-time data, trade shares in fractional amounts, and complete transactions instantly.
The author points out that these barriers are systemic, but solvable. Using historical examples of innovation disrupting established systems, he suggests decentralized finance (DeFi) offers the solution. He highlights DeFi’s potential to create a new foundation for finance, leading to increased transparency, accessibility, and efficiency in equity markets.