When people think that DeFi is not innovative anymore, US banking giant Morgan Stanley starts a new DeFi business. The sources pointed out that Morgan Stanley recently reached an agreement with a US technology company called Df technology to collaborate and start a new company. Focusing on the innovation of blockchain financial platforms, it aims to create a new DeFi model as a “decentralized bank”, which is likely to sweep the entire industry.
A previous agreement was reached and signed at Morgan Stanley’s headquarters. The new company name is Morgan DF Fintoch. Morgan Stanley and Morgan DF Fintoch each hold approximately 33% and 67% of the shares. Morgan DF Fintoch, with its capital strength and expertise in the finance industry, will concentrate on developing Fintoch, the company’s blockchain financial platform, which expects a major upgrade.
Fintoch is an investment platform that focuses on blockchain finance. Its core technology is an innovative smart contract technology developed from the breakthroughs in technology with “zero-knowledge proof” and “multisig”.
Fintoch platform is different from a typical DeFi investment in that the lender providing the funds is not at risk of losing anything with the protection of the HYBRIID technology. Because funds provided to Fintoch will be held in a multisig address that is jointly monitored by the platform and monitor nodes.
Besides the security deposit, the borrower must also obtain “multiple signatures” from the monitoring nodes or the platform in order to access and transfer the funds to a Fintoch-awarded DEX for investment.
In addition, the user’s investment funds in the DEX are constantly regulated by Fintoch’s smart contracts. Once the investment lose money, and the liquidation conditions are met, it will immediately and automatically swap the investment funds into the currency provided by the lender, and withdraw them to the multisig wallet to ensure that the lender does not suffer any losses.
According to the report, HYBRIID includes a technology that prevents collusion and self-stealing between monitor nodes and funds users, also known as “zero-knowledge proof” technology.
Fintoch currently has 100 monitor nodes. Each time a user wants to borrow funds, a random group of 10 nodes will be selected out of 100 monitor nodes. After that, the private key is generated through zero-knowledge-proof encryption. This private key, along with the private keys of the platform and the user, creates an independent multisig smart contract together. If anyone wants to cheat with monitor nodes, he or she needs to include the entire group of monitor nodes as his or her “moles”, and the probability of this is almost zero.
More importantly, even if a group of cheating nodes is selected, cheating cannot be achieved since all three parties remain anonymous. This technological breakthrough enables any user on the Internet to manage funds with the platform and the monitor nodes. The whole process is on the blockchain, via the implementation of smart contracts. Not only it is transparent, but also provides 100% monitoring.
With its powerful peer-to-peer investment and lending services, Fintoch is poised to become a decentralized bank, meeting the needs of both lenders and borrowers. Combining the advantages of new technology and traditional finance, Fintoch is predicted to be a game-changer in the DeFi market.
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