Potential beneficiaries include providers of decentralized finance (DeFi) infrastructure, vault curators, platforms for collateral management, automated treasury services, lending markets, and reward systems.
“AI has the capability to automate all of this within a regulated environment,” he noted.
According to Vollono, the necessary technology already exists, highlighting smart contracts, oracles, DeFi frameworks, and API-based infrastructure that can be adapted for regulatory compliance.
“This opens up a completely new realm,” he remarked.
Legislation
The ongoing discussion about legislation has highlighted the friction between traditional banking institutions and the cryptocurrency sector, particularly regarding stablecoins and the movement of deposits.
“There’s a lot on the line,” Vollono pointed out. “While banks are concerned about deposit migration, that worry might be somewhat exaggerated.”
He explained that the conventional fractional reserve banking system relies on banks having substantial capital reserves that can be lent out to foster credit and liquidity. If deposits transition to tokenized dollars or yield-generating blockchain solutions, this model may face challenges.
Despite this, Vollono believes that any eventual agreement will favor established institutions rather than pose an existential threat.
“Smart incumbents will adapt and compete,” he stated. “Banks don’t necessarily need to lose their market share.”
He proposed that banks might even collateralize their reserves to create their own stablecoins, generating compliant yields under the Clarity framework, thereby paving the way for innovative business models.