The growth of decentralized finance (Challenge) And the tokenization of assets continues to go wild, said Nikolaos Panigirtzoglou on Wednesday
Total locked value (TVL) In DEFI remains less than 2021 Highs, most of the activities still motivated by crypto-native and detail users, noted the report.
Institutional adoption has lagged behind despite the development of an infrastructure ready for compliance, such as authorized loan pools and KYC chests, Panigirtzoglou wrote.
Major obstacles remain. Institutions are faced with regulatory fragmentation, legal uncertainty around chain assets and concerns about the safety of intelligent contracts, analysts wrote. As a result, most institutional crypto activities remain concentrated in Bitcoin
.
The tokenization also had trouble delivering. Although the sector has experienced a certain traction, with $ 25 billion in tokenized assets, 8 billion dollars in tokenized bonds and increasing adoption of money market funds, most initiatives remain small, illiquid or experimental, the bank said. Eminent efforts like Blackrock’s Buidl and Broadridge’s Distributed Ledger Repo (DLR) The platform offers efficiency gains, but lacks scale.
Panigrtzoglou noted that in private markets, tokenization is strongly concentrated among some actors and lack of significant secondary market activity.
Many traditional investors remain skeptical, in particular given the transparency of blockchain, a drawback for institutions that promote opaque negotiation sites such as dark swimming pools, depending on the report. The continuous rise in power of the trade in exchange is illustrated this preference.
Despite regulatory initiatives such as the “project crypto”, Panigrtozoglou doubts that rules of rules alone can overcome the deeper problem: traditional finance does not yet see a clear need for blockchain.
Fintech has already improved speed and efficiency within the current system, reducing urgency to adopt alternatives to tokenized, added the report.
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