Opinion by: Kevin Rusher, founder of Raac
Crypto is a movement born from a cultural rejection of traditional finance, motivated by the conviction that transparency, decentralization and the code can build a better financial system than that which led to the financial crisis of 2008. Indeed, for many, the creation of Bitcoin was a rebellion against traditional financial guards who siphone any value out of the market.
This fundamental spirit still counts for crypto, but the landscape has radically changed after 15 years. Today, BlackRock is the second largest Bitcoin holder (BTC), beaten only by its founder, Satoshi Nakamoto. At the same time, almost all the main managers of traditional assets have a certain interest in industry via BTC, ether (ETH) and active active world (RWAS) such as private credit and token treasure goods.
The exception, however, is the decentralized financial sector (DEFI). Although designed to facilitate universal financial freedom, extreme degen culture, the same and the unbearable media tunning loops mean that DEFI still resembles a casino for most foreigners.
In this new cryptographic climate, it is time for DEFI to change its image, and a large part of this mission lies in the recognition that the institutions it has been designed to be an antidote is, in fact, a vital part of its growth course.
Crypto confidence is still lacking
Institutions are slowly leading in the crypto for several years. The launch of the Traded (ETF) fund of BlackRock Bitcoin felt a turning point. Now, at $ 70 billion in management assets (AUM), the fastest ETF growth ever seen, BlackRock’s bet has paid off.
Despite this, the crypto continues to suffer from a lack of confidence. According to recent data, 38% of non-Crypto owners say they will never invest in the asset class because of its volatility and its lack of access. In the United States, the adoption of the crypto remains lower than it was in 2022, at 28% against 33% of the year when the Terrale collapse suffered $ 60 billion in the crypto market capitalization overnight.
Subsequently, 63% of Americans do not trust current cryptography investment products.
This lack of confidence in the crypto is a serious problem. This is particularly the case in Defi, where confidence may be the lowest, thanks to the events of 2022, but where the scams and hacks memecoin are always frequent. This confidence problem must be resolved, which requires stability, structure and liquidity.
What “combinations” bring to the Table DEFI
This is where Wall Street and its new defenders of cryptography – nicknamed “follows” – can bring real value to DEFI. While many cryptocurrencies are fiercely against these institutional investors and the players aligned by the government who enter crypto, they begin to build a significant capital of onchain.
In relation: In volatile markets, RWA as gold are a lifeline
In no sector, this is no longer obvious than in real assets in tokenized (RWAS), whose market capitalization has just exploded $ 24 billion, against $ 11.5 billion in June 2024, and manifesting itself throughout the geopolitical instability which sent other red markets during the period.
Incredibly, private credit – a class of traditional elitist active ingredients relatively stifling (tradfi) – leads all Rwa of Onchain with a market share of 58%, followed by US Treasury tokenized at 34%. And this growth does not show any signs of slowdown, with Vaneck predicting that Rwas will exceed $ 50 billion by the end of 2025.
Rwa tokenized are a huge walkway for Wall Street in decentralized finance. Traditional assets provide familiarity, drop in volatility and stronger collateral design, passing Tradfi’s transition to Defi for suspicious investors.
Significantly, beaten, influencers or the same manner did not lead to this push. The combination thieves dip their toes in the crypto and deffi to take advantage of its open infrastructure, the increase in liquidity and the ease of negotiation. And this flow of capital is exactly what defy needs to prosper and develop.
Defi matures
Defi finally meets the standards that institutions need and awaits. The sector offers a cleaner user experience, executives ready for compliance and stable and programmable yields that often surpass traditional financial references.
A recent artemis and vaults report confirms the quarter of work. While most investors simply examine the price graphics, Defi quietly becomes the financial back-end for institutional actors. The report identifies “Invisible DEFI” as an upward trend: protocols like Morpho, Spark and Aave incorporate the yield directly into applications, exchanges and fintech wallets, removing the complexity of DEFI for the end user. With the help of these smooth integrations, in June 2025 only, the guaranteed loan platforms exceeded $ 50 billion of total locked value (TVL).
Another example is Coinbase credit activity. Thanks to this initiative, Coinbase has issued more than $ 300 million in BTC -supported loans, all onchain and most non -native users do not even know that blockchain is involved.
Regulation, clarity, liquidity and growth
DEFI is now ready for institutions. And, combined with clearer regulations and real policy changes, a bridge between Tradfi and Defi is more like an opportunity to take advantage of a threat to the existence of DEFI.
However, this does not mean that combination thieves dictate the terms. If the institutions adopt blockchain technology through centralized and authorized systems, it will be nothing more than Tradfi in a different outfit.
The next step – and the most important – is to ensure that DEFI can coexist with equality thieves, the sector remaining faithful to the principles of decentralization on which it has been built but open to collaboration and evolution.
The DEFI ecosystem will inevitably be more serious if institutional participation is adopted. There will be less than millionaires overnight and more conformity to join, but it is the only way to build a system that does not collapse each time a tweet becomes viral. If the adoption of consequences guarantees a prosperous future for Defi, then it is worth it.
Opinion of: Kevin Rusher, founder of Raac.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
