Ether.fi’s new step: From DeFi to full-fledged digital banking

We’ve heard a lot about DeFi in the crypto world. But how easy DeFi can be used in the daily life of ordinary users is the big question now. This is where ether.fi’s new initiative seems quite interesting to me. With their “Summer” update, the company is trying to bring not only the convenience of holding or earning crypto, but also trading, lending, and daily expenses—everything on the same platform.

One of the most important things in the new update is the convenience of trading tokenized stocks and metals. By connecting with xStocks, eligible users will now be able to gain exposure to tokenized stocks and metals alongside their crypto assets. The assets will be managed through a self-custodial vault. However, users in all countries will not have this benefit from the start. This service is not available in some regions, especially the United States, due to regulatory restrictions.

Another important addition is the lending system with Aave. Using this dedicated lending market built on the Optimism network, users can borrow against their entire portfolio as collateral. The current lending rate is reported to be around 4 percent. The most interesting thing is that the borrowed money can be spent directly through the ether.fi Cash card.

This is where ether.fi’s plan is a bit different from conventional DeFi platforms. Instead of just lending or generating yield, they want to create an entire financial ecosystem. They already have about 70,000 Cash card users. The new benefits could keep these existing users on the platform longer.

There have also been new changes in the case of the ETHFI token. There are plans to launch programmatic buybacks using a portion of the revenue generated from the protocol. Although the specific schedule or amount of the buyback has not been disclosed, it could still be an important change for token holders.

In my view, this move by ether.fi gives a big indication of the future of DeFi. People are looking to not only trade crypto, but also manage assets, borrow, and make daily payments from one place. However, regulatory uncertainty remains a major obstacle. The extent to which lending volume, card adoption, and the use of tokenized assets increase in the coming days will determine how successful ether.fi's new model actually is.