Polkadot unveils capital markets division to connect TradFi and web3

Polkadot has launched an institutional arm focused on bridging traditional finance and the growing web3 ecosystem.

In an announcement , the Polkadot ( DOT ) platform said the new Polkadot Capital Group will focus on capital markets as the team looks to bolster web3 engagement and access to digital assets for institutions. The division’s establishment is in response to the growing institutional interest in crypto and blockchain across the globe, a scenario helped by positive shifts in crypto regulation in the United States.

Polkadot Capital Group’s aim is to bridge TradFi and the web3 infrastructure ecosystem, providing institutions with the educational resources and insights they need to understand and explore the opportunities possible via the Polkadot network.

In this case, Polkadot Capital will seek to connect asset managers, banks, exchanges, over-the-counter trading desks and venture capital firms to the Polkadot network. 

“Our goal is to lead through data-driven education, driving adoption through knowledge transfer, and adapting in real-time to the dynamic priorities of institutional market participants,” said David Sedacca, Polkadot Capital Group Lead.  “We envision a future where institutions clearly understand the unique value of our network and can engage confidently.”

Eyes on tokenization, decentralized finance

The capital markets-focused unit boasts a team with vast expertise and experience across traditional finance, digital assets and enterprise technology. Its remit will include curating diverse offerings that institutions can tap into as a gateway to Polkadot, including details on centralized and decentralized exchanges and solutions. 

Sedacca-led Polkadot Capital plans to take the bull by the horns to drive traction for the DOT network, and its mandate will add illustrative use cases highlighting the potential for key areas such as real-world asset tokenization, staking, and decentralized finance . 

RWA and DeFi are two of the fastest growing segments of the digital asset market, with over $26.4 billion in tokenized RWA onchain and the total value locked in DeFi protocols currently at over $149 billion.

“We are structuring strategic partnerships with brokers, asset managers, and capital allocators emanating from our vision of providing clear, credible, and actionable resources,” Sedacca added.

Polkadot is currently a $6.1 billion cryptocurrency whose native token trades around $3.79.