Open finance refers to the integration of bank and third-party blockchain-based technological applications that are designed to transform the traditional finance sector. Open finance aims to enable financial institutions, large enterprises, and central banks to conduct their business practices in a more transparent, efficient, automated, and data-driven manner. There are three main parameters that must be implemented to facilitate the creation of a resilient and transparent open finance ecosystem. Firstly, to establish a settlement layer consisting of different stablecoins; second, to onboard enterprises and construct a data layer to help enable the technology; and lastly, to allow financial institutions to create financial products using trusted enterprise data.
