Private banking has long been synonymous with tailored wealth management for high-net-worth individuals (HNWIs). These exclusive services come with barriers—high entry thresholds, and dependence on intermediaries–but also come with great service and privacy.
The advent of blockchain technology and DeFi present an opportunity to reimagine—and decentralize—this entire realm. In this article, we’ll explore private banking’s traditional framework, its benefits, limitations, and how these services can be adapted on-chain with privacy-enhanced DeFi of Common.
Privacy shouldn’t just be for the elite
One of the primary attractions of private banking is discretion—clients expect their financial activities to remain confidential. Traditional banks; however, still operate within centralized frameworks and operate on fractionalized deposits–—potentially creating issues when withdrawing money.
Privacy-enhanced DeFi can bring this same level of financial discretion through shielded transactions and zero-knowledge proofs. These enable users to transact and manage their wealth without exposing their financial history to the public or third parties. And–most importantly–they come with full custody over your assets.
Free access to high-yield strategies
Private banking clients get access to privileged investment vehicles, from hedge funds to tailored yield-generating strategies.
Private DeFi can rival this exclusivity. In Common, smart yield is an advanced DeFi mechanism that allows users to optimize their returns by allocating funds across various yield-generating positions. Plus, staking platform tokens can make your voice heard by participating in governance voting to influence these strategies—ensuring efficient and personalized portfolio management without reliance on financial advisors. You don’t have to do it–but you can, and this is your advantage.
Flexible governance and control over your own financials
While private banking clients often have to trust financial managers to act in their best interests, Common puts control back into the hands of users. Through position and strategy governance, users can vote on which assets and liquidity strategies should be prioritized. This community-driven approach ensures that users—not intermediaries—have the final say over their financial futures.
Automation and self-custody
A major drawback of traditional private banking is its reliance on intermediaries, which introduces fees, delays, and potential conflicts of interest. Common can eliminate these inefficiencies by enabling fully automated financial transactions via smart contracts. Additionally, shielded accounts can offer the same iron-clad security of private wealth management without requiring trust in third-party custodians.
Rewarding participation with airdrops and LP incentives
In traditional banking, only top-tier clients receive exclusive benefits. That’s not the case in DeFi, nor in Common–you can get rewards through staking, providing liquidity, and other incentives. Users who stake tokens will also be eligible for token airdrops.
Sustainable and transparent fee structures that benefit individuals—not institutions
Private banks often charge opaque management fees that can erode investor profits over time. In Common, a transparent and fair fee structure is designed to benefit users instead of institutions. While fees made from shielding and unshielding incentivize users to keep their assets private. Unlike traditional financial institutions, these fees will directly contribute to strengthening the privacy and security of the platform.
Not only that–if you engage with the platform either through staking AZERO with relayers or CMN in the platform, you’ll get a share of the fees!
Making private banking… Common
As a privacy-enhancing DeFi platform, Common delivers users autonomy, sophisticated financial tools once reserved for the elite, and of course, privacy. By leveraging blockchains, DeFi protocols, and privacy-enhancing solutions, Common democratizes access to premium financial services, making them available to anyone, not just the privileged few.
Common is not just an alternative to private banking—it’s an evolution of wealth management. By combining privacy, governance, high-yield strategies, and automation, Common empowers users with financial tools once reserved for the ultra-wealthy. In a world where financial autonomy is becoming increasingly valuable, Common ensures that elite-level financial services are no longer exclusive but accessible to all.
Take control of your financial future. Sign up for the waitlist to be the first to use Common!
