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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.

How Do Decentralized Lending Protocols Compare to Rehypothecation in Risk Exposure?
What Are the Challenges to Widespread Adoption of Smart Contracts for Disintermediation?
What Is ‘Counterparty Risk’ and How Does a Prime Broker Help Mitigate It?
How Do Prime Brokerage Services Differ in Crypto Compared to Traditional Finance for Institutional Traders?