Feb 14, 2023 - In this project, our research leaders develop a method of formal analysis of the value of decentralized finance (DeFi) initiatives. Inspired by Vitalik Buterin’s writings on the intrinsic worth of projects in the crypto economy—that they must solve legitimate human problems on a macro scale—our researchers mirror the approach of Benjamin Graham and David Dodd in Security Analysis. For several different applications within the DeFi space, they identify the business metrics as well as the financial and social key performance indicators (e.g., staking yield, fees generated) that will help investors distill signals from the noise�...

Jul 11, 2022 - This research brief lays out a taxonomy of nine digital asset categories, including tokens for exchanges, natural assets, platform governance, and smart contracting protocols. For each category, it provides a definition with examples of the asset’s creation and usage. It also explains the asset category’s disruptive effects on financial services and the global economy. The brief is ideal for leaders who want a quick overview of these important financial innovations.

Sep 30, 2019 - This research explores the disruptive effects of blockchain technologies on central banking and the financial services industry. Its author discusses Facebook’s proposed cryptocurrency Libra, and how the other FAANG companies—that is, Amazon.com, Apple, Netflix, and Google—might respond with their own digital tokens. He introduces five transformations—cryptoassets, the tokenization of everything, blockchains as state machines, a new model for identity, and the nine forms of decentralized finance. He examines the challenges that incumbents and innovators face during this transition; and he previews the world of financial services in th...