How Do Institutional DeFi Protocols Aim to Disrupt the Traditional Prime Brokerage Model?
Institutional DeFi protocols aim to replace the centralized functions of prime brokers with automated, transparent smart contracts. They offer services like lending, borrowing, and derivatives trading directly on-chain, eliminating the need for a trusted intermediary.
This promises lower fees, 24/7 access, and reduced counterparty risk through collateralized, auditable code, potentially disintermediating traditional players.