TradFi Institutions Explore DeFi for Equities Access, Aiming to Close Wealth Gap

Traditional finance (TradFi) institutions have been increasingly investing in cryptocurrencies, but this alone is not enough to address the global wealth disparity. The top 10% of earners in the US own more than 90% of all stocks, and billions of individuals worldwide lack the financial literacy, digital tools, or minimum funds required to access basic investment opportunities. To truly democratize wealth-building, traditional institutions must explore new use cases for digital assets, particularly in the equities market.

The equities market, which involves shares of private companies, is one of the most potent tools for wealth creation. However, access to equities is often restricted by outdated infrastructure, including stale and inaccurate pricing data, exclusive execution venues, and slow settlement periods. These barriers disproportionately affect smaller investors, perpetuating the "rich get richer, poor get poorer" narrative. Decentralized finance (DeFi) technologies offer a solution by reimagining the infrastructure of TradFi to create a system that is faster, more accessible, and more efficient.

Decentralized price feeds can provide real-time, accurate price data on equities at a lower cost than traditional methods. This empowers traders of any background or location to access fresh market data and trade equities with the same knowledge as elite traders. Decentralized execution platforms enable marketplaces for fractional, tokenized equity exposure, allowing traders with an internet connection to make trades supported by smart contracts. This democratizes access to high-growth companies, even for those in rural or secluded areas. Additionally, settlement in DeFi is almost instantaneous, removing the need for intermediaries and unlocking capital for continuous use, making trading more attractive to smaller players.

By revolutionizing price, execution, and settlement through decentralized innovations, equities can be entirely disrupted, closing the wealth gap that keeps billions of people at the mercy of a select few. This means rethinking the way our financial infrastructure exists and operates today, creating a financial system that is genuinely democratized. While equities are one of the most powerful wealth-building tools available, most of the global population still can’t access them due to geography, legacy, and privilege. Through decentralized innovations, equities can be made more accessible, promoting equity, access, and transparency in the financial system.