The growth of decentralized finances (Defi) And the asset owner continues to give up, JPMorgan’s Nikolaos Sidezoglou said in a research report on Wednesday, citing disrespectful recovery since 2022 winter of Crypto.
Total amount that is locked (TVL) In Defi remains below 2021 highs, with most activity driven by crypto-natives and retail users, the report is noted.
The adoption of the institution has been caught despite the development of infrastructure ready to comply, such as the permission of lending pools and KYC-enabled vaults, written by Pidanirtzoglou.
The main obstacles remain. Institutions face fragmentation of regulation, legal uncertainty around on-chain assets, and concerns about the security of the intelligent contract, the analysts write. As a result, most of the institutional crypto activity remains concentrated in Bitcoin
.
Tokenization also struggles to deliver. While the sector has seen some traction, with $ 25 billion in tokenized assets, $ 8 billion in tokenized bonds, and growing adopting money market funds, most initiatives remain small, irrational, or experimental, the bank said. Well -known efforts such as Blackrock’s Biddled and Broadridge’s Shared Ledger Repo (DLR) The platform offers acquisitions, but lack of scale.
Sideirtzoglou noted that in private markets, tokenization is heavily concentrated in some players and no significant secondary market activity.
Many traditional investors remain skeptical, especially providing blockchain transparency, a drawback for institutions that favor trade trade areas such as dark pools, according to the report. The ongoing increase of off-exchange equity trading describes this preference.
In spite of regulatory initiatives such as the SEC “Project Crypto“
Fintech has enhanced the speed and efficiency within the current system, reducing the rush to adopt tokenized alternatives, the report added.
Read more: SEC Chief Paul Atkin’s Crypto Flying Flying Under Radar Amid Market Selloff: Bernstein
