Finantech companies can move away from traditional lending services, as decentralized alternatives offer more accessible loans with smaller fees.
Decentralized Finance (DEFI) Lending Protocols Enable users to lend and borrow their cryptocurrency for PASSIVE INCOME With a permission without permission, through wise contracts instead of many financial mediators.
The growing efficiency and access of defi lending protocols can inspire more Fintech companies to choose for them in centralized alternative lending, according to Merline Egalite, co-founder of Morpho, the second largest decentralized lending protocol.
He told Cointelegraph during an exclusive interview with ETHCC 2025:
“Fintechs realize that the integration of the defi is a strategic move. If they do not do so, they will avoid others because the finishes compete with the UX and the product they provide to users.”
“Fintechs realize that the DEFI can provide a higher rate,” Egalite explains, adding that the DEFI adoption will help financial institutions “provide the best financial products,” in terms of lending and trading.
This will inspire part of the lion’s global fintech firms to move to defi within the next three years, he added.
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Morpho is the second largest protocol for lending the crypto industry, worth more than $ 5.5 billion in total locked (TVL) value in entire 20 blockchain, behind the AAVE’s AAVE leading industry of $ 31 billion TVL, displaying Defillama data.
Defi loans can present an important financial lifeline for global citizens without accessing the traditional banking infrastructure.
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Defi’s non -permission nature helps to explode traditional banking restrictions
Increasing more Fintech companies recognizes the benefits of the unauthorized nature of the defi, which eliminates financial mediators and centralized risks involved in the lending and borrowing process.
Fintech using traditional banking metals still risk losing their license or accessing the application interface (API), Egalite said, which increases:
“So you are lying big banks? In Defi, you are not afraid that there are no mediators. You just trust the code itself.”
While Fintech companies have already identified these benefits, regulated yield -carrying products can inspire more financial institutions to explore defi lending in the future, Egalite added.
Defi Lending has risen to a newly combined all-time high $ 66.7 billion on TVL on Friday, according to Defillama data.
AAVE’s $ 31.7 billion TVL currently costs 47% of the total defi lending cost, while Morpho’s $ 5.5 billion account for more than 8.2%.
It is marked by a meaningful Recovery for crypto lending.
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