Institutional DeFi Adoption: Addressing Functional Limitations
CryptoNewsTerminal Staff04 Sep, 2024
Institutional DeFi Adoption: Addressing Functional Limitations
Institutional adoption of DeFi has been hindered by functional limitations, not just regulatory concerns. DeFi must meet the requirements of traditional financial institutions by addressing capital efficiency, liquidity fragmentation, and the lack of institutional primitives. One way to bridge this gap is to find DeFi's "BUIDLs" - transformative moments that establish the value of tokenized securities and ignite broader institutional adoption. By activating institutional-grade products and fostering collaboration between traditional finance and DeFi, we can unlock the full potential of DeFi for all participants.