Public figures are beginning to publicly support DeFi as an alternative to traditional banking services. In a recent podcast interview, Eric Trump explained why decentralized finance threatens the system that banks rely on.
According to Trump, DeFi removes the delays, paperwork and fees that have sustained big banks for decades.
How DeFi Changes Borrowing Overnight
Speaking on the Money Talks podcast on November 27, Eric Trump used a simple example. Imagine you own $1 million worth of Bitcoin and want to buy an $800,000 house. With banks, this process can take up to 120 days. This involves endless paperwork, KYC checks and numerous middlemen, all collecting fees.
Eric Trump: DeFi destroys the fee system that supports bank ‘skyscrapers’.
During an interview on the “Money Talks” podcast (November 27), Eric Trump explained how using Bitcoin as loan collateral is disrupting traditional finance. He highlighted the main advantage: a… pic.twitter.com/PbIk9g03o2
-Wu Blockchain (@WuBlockchain) December 23, 2025
With DeFi, Trump explained, you can process the same loan almost immediately. You can borrow directly against your Bitcoin. In just a few minutes, you will receive the funds in your wallet. There are no banks, waiting times, or approval committees involved. This speed alone changes everything.
The banks are not happy
Trump made it clear why banks like JPMorgan didn’t like this change. Traditional finance relies heavily on fees. Loan origination fees, inspection fees, surveyor fees, and lengthy approval processes all generate revenue. These fees finance the immense skyscrapers from which banks pride themselves on operating. DeFi removes most of these layers. When you borrow against your crypto assets, banks lose control and income from those assets. This is why, according to Trump, banks are resisting this change.
🚨 Eric Trump explains why banks hate DeFi.
To use $BTC as collateral and get a loan instantly. No paperwork. No months of waiting, while banks lose fees and control.
DeFi is faster, cheaper and automated. 🔥 pic.twitter.com/ZKjA9vGADI
– Wise Advice (@wiseadvicesumit) December 23, 2025
Another key point highlighted by Trump is how blockchain better manages risk. If the price of Bitcoin decreases, DeFi systems can adjust the collateral in real time. The protocol can sell part of its assets to ensure safe lending ratios. This type of transaction is not possible with traditional assets like real estate. They are slow and illiquid. Collateral in the blockchain is liquid and responsive 24/7.
Control returns to the user
Trump questioned why banks decide whether people can borrow against their assets. With DeFi, this decision is up to the individual. Users control their assets, loans and risks. As he pointed out, this feature is not theoretical. It already works today using Bitcoin and other cryptocurrencies.
🇺🇸 Eric Trump says the modern financial system is evolving and crypto is rewriting the rules. pic.twitter.com/eRYZy6DdDC
– Day Drew (@Dayinthemarket) December 21, 2025
Conclusion
DeFi is redefining the rules that banks have used for decades. Fast loans, lower costs and full user control transform expectations. As Eric Trump pointed out, when people become accustomed to borrowing without problems, the old system begins to seem outdated.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is intended for educational, entertainment and informational purposes only. Any opinions or strategies shared are those of the editors/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets; therefore, perform thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
