Crypto began as a rebellion against traditional finance, emphasizing transparency and decentralization. However, as institutional involvement increases, especially with companies like BlackRock entering the scene, DeFi's image needs a makeover. Currently perceived as a volatile ‘casino’, DeFi struggles with trust issues stemming from past crises and ongoing scams. While many crypto enthusiasts oppose institutional investors, these ‘suitcoiners’ can inject stability and liquidity into the DeFi sector. Tokenized real-world assets (RWAs) have surged, reaching a market cap of over $24 billion, proving traditional assets can blend well with DeFi. Increasingly, DeFi platforms are being integrated into mainstream fintech applications, enhancing user experiences. As institutions emphasize compliance and structure, fostering a partnership between DeFi and traditional finance seems crucial for growth. The coexistence of these two realms could lead to a more robust ecosystem, where DeFi's principles of decentralization don't get compromised. Embracing institutions might seem daunting, but if it ensures DeFi's future viability, it might be worth the challenge.

Source 🔗