The agreement paves the way for DeFi investing in the NetCents platform and contemplates a joint venture between NetCents and Vesto
Technology Inc () (OTCQB:NTTCF) (FRA:26N) has signed its first agreement in the burgeoning decentralized finance – or DeFi – space, it announced Friday.
told shareholders that it agreed with Vesto Inc, a San Francisco-based company with a platform that allows users to choose from multiple DeFi protocols in what is termed a “virtual supermarket.”
The agreement paves the way for DeFi investing in the NetCents platform, the company told shareholders. With regulatory approval, NetCents plans to enable a portal to the Vesto infrastructure from the NetCents wallet to help facilitate user adoption of DeFi investing in an efficient and easy to understand interface.
The letter of intent contemplates a joint venture between NetCents and Vesto, and an option for NetCents to invest in Vesto and hold a significant ownership stake in the company, according to a statement.
DeFi is an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. In contrast to CeFi, or centralized finance, DeFi platforms can be used anywhere by any individual without them having to hand over their personal data to a central authority.
“DeFi is a great concept – but it needs a platform like NetCents to make it understandable to the mainstream – and we are uniquely positioned to achieve that,” NetCents CEO Clayton Moore said in a statement.
“Regulators aren’t going to be excited about DeFi without someone like NetCents there to protect investors from loss in some way. NetCents intends to screen DeFi players, and will make sure that investors will continue to be able to have access to their funds even if a user does something like forget the password they have on their account.”
Moore added the DeFi space needs the tools and the process must be attainable by the novice crypto investor to reach widespread adoption.
“We will be adding a layer of simplification to the process so that individuals can have their savings actually working for them without the complexity of the current platforms. Individuals have the right to lend their money at market-based rates instead of getting 1% interest on their savings that the commercial banks are offering,” Moore added.
The company cautioned shareholders that many of the concepts embraced by DeFi platforms have not been vetted by authorities that regulate financial products. Net Cents said it plans to work together with regulators to develop a compliant product.
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