Chainlink (LINK) co-founder Sergey Nazarov explains how crypto adoption could see exponential growth.
In an appearance on the YouTube channel The Defiant, Nazarov say that traditional financial institutions (TradFi) will power crypto’s “next billion users.”
“I do think that a very large number of users, both in terms of total value and per individual, are going to come from large asset managers, large banks, many of whom, frankly, have millions of users, who have all or all of their life savings in those institutions. Already having an account with that institution allows you to use that account to do crypto stuff.”
According to the creator of Chainlink, both retail and capital market participants will be caught up in a wave of crypto adoption expected to be driven by TradFi. He notes that participants in the TradFi world will likely not even suspect that they are using blockchain to process their transactions.
“So the first category is the retail consumer who is using more DeFi (decentralized finance), and using more public chains where the user experience around private keys really needs to be improved.
And then the other group will be the TradFi users in the capital markets who often don’t even fully understand or care that they are using a blockchain-based asset or that they are getting their returns from a DeFi or a regulated DeFi protocol, but they will. But they will be a user of it.
And I don’t know which of those two groups will come from more or a larger percentage of that next billion users, but I’m pretty sure that a significant percentage, a double-digit percentage, will come from both. …
I think what could end up happening is that given the overall numbers, you could end up getting more individual people on the side of the public web3 retail community. But on a total value basis, you could end up getting more total value for fewer TradFi capital market users. If I had to guess, I think this is probably how this next billion user thing is going to work out.”
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