Verso: Bridge between Traditional Finance & DeFi | Human & Machine
New!
September 18, 2021

Verso: Building a bridge between traditional finance and DeFi

by The Human & Machine

Verso connects the gap between traditional financial products, retail consumers, and DeFi applications by creating a decentralized financial service platform.

Microfinance has been growing for the past years. This industry grew the most in Southeast Asia, exceeding 24%, and is expected to grow more globally. Microfinance is a type of financial service that offers micro-loans to unbanked populations, such as savings, insurance, and payment products. 


The market potential of traditional financial institutions is not yet covered due to little coverage of global financial services. The World Bank and Finex data show that there are still 1.7 billion people in the world with no financial services. Imagine what will happen if these arising markets are fully developed.

Create a decentralized financial service platform

DeFi answers the financial inclusion problem to a certain extent. However, the current financial complexity and concepts stop the adoption in this area. The one thing that contains the ability of DeFi to grow is the interoperability of smart contracts and “islands” with traditional financial institutions and service providers since DeFi is not connected to mainstream solutions such as wallets and banks. 


Verso connects the gap between traditional financial products, retail consumers, and DeFi applications by creating a decentralized financial service platform.  "Verso is designed for traditional finance and decentralized finance (DeFi) while taking into account the differences in regulatory requirements of different jurisdictions." Verso CEO Gregor Arn said. Arn has a senior background in the financial field and has focused on developing business in Asia since 2010.


The main point of Verso is to bridge DeFi with traditional finance. 

“Imagine if an insurance company can generally only attract customers of traditional financial institutions. However, if insurance products are integrated through the Verso platform, they can be centralized and distributed. As a result, they gain an advantage in the financial system. Any user with an electronic wallet can become the ultimate consumer.” Arn pointed out, “At present, Verso is built on the high-performance financial public chain Avalanche, and users can enjoy fast and low-cost financial services.”

Provide decentralized microfinance services

Microfinance is vital in real-world emerging markets. This industry may offer small amounts, but it is still beneficial for ordinary people who do not access traditional financial institutions like banks. 


"Verso provides decentralized microfinance and other micro-financial services by integrating financial service providers, financial institutions and wallet providers, and DeFi product participants," Arn said.

Attain compliance with decentralized financial services

There are several decentralized financial products that the market offers. However, due to security and regulatory concerns, it is not easy to bring them to end-users. The compliance and super visibility of financial services are vital. Therefore, decentralized financial services and banks related to Verso have a good standing. 


Selecting the borrowers’  qualifications and confirming the financial companies’ right to operate is a primary guarantee for building the compliance and security of the Verso platform’s financial services. In addition, in maintaining a partnership with Verso, these companies must retain their respective reputations. 


"Imagine that a user spends $10 in a bank account to buy a decentralized financial product and get income from it. At the same time, he does not have to worry about security issues because the Verso platform uses a bank account to purchase products, and these service providers have a good reputation and The right to operate.” Arn said.

Provide embedded financial services

Bringing financial services to unrelated markets or non-financial user experiences is the goal of embedded finance. For instance, anyone can browse a travel website and purchase an insurance package from a travel company without a mediator.


Users can also earn income, such as payment for content. "Embedded finance is easy to use and easily brings financial products to non-financial platforms. Therefore, it is an important way to promote the universalization of financial services. This is also one of the important puzzles of the Verso system." Arn said.

Why Verso is different

Arn says that through Verso, customers will be able to find other DeFi services such as peer-to-peer payment. This will slowly entice those customers who only see CeFi start using DeFi products, which is beneficial to the popularization of DeFi. 


Verso is also specifically made for B2B platforms and designed for the regulated financial services industry. There are currently about 3,500 different e-wallets in the entire industry. Unfortunately, 99% of them cannot interact with each other, and Verso breaks these barriers between traditional finance and DeFi and builds a modern financial system with more liquidity.


SHARE