Defi and Assets Token have not registered the expected institutional adoption: JPMorgan

According to the International Bank, despite the advances in regulatory matters, sectors such as DEFI And real -world asset token have not advanced as much as it is expected among the most consolidated companies.

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• The Bank highlights the low institutional participation in protocols DEFI and tokenized assets.
• They attribute the slow advance to the lack of clear regulations and little interest of the traditional sector.
• Not even the rise of products such as Buidl of Blackrock manages to change the narrative.

The institutional adoption of decentralized finances (Defi) And the tokenization of assets does not yet take off, despite years of technological development and certain recent regulatory advances, according to a new analysis published by JPMorgan, reviewed by The Block.

DEFI Keep dominated by retailers

According to the report produced by the entity’s analysts, led by Nikolaos Panigirtzoglou, the total locked value (TVL) in DEFI He has not managed to recover the levels recorded in 2021. The recovery after the collapse of 2022 has been slow, if not stagnant.

Most of the use of DEFI It continues to be starring retail users and native participants in the crypto sector. Traditional institutions, on the other hand, remain out of the margin, despite the appearance of compliance mechanisms such as vaults with KYC verification and liquidity pools.

JPMorgan Identify three key barriers that stop adoption: lIn the absence of harmonized regulations internationally, legal uncertainty regarding investments in Blockchain and the absence of guarantees on the safety and execution of intelligent contracts.

In this context, Bitcoin investment products remain the main institutional adoption vehicle of the crypto ecosystem, according to analysts.

The “exaggeration” of tokenization

As for the tokenization of traditional assets, analysts recognize that, despite the “Hype”, The total volume of tokenized assets is barely the USD $ 25,000 million, a figure that they consider not significant. In addition, this market is dominated by crypto signatures and coverage funds.

Even in segments where tokenization could offer real benefits – as liquidity intradic in repoal markets or automatic bond liquidation – adoption has been scarce. More than 60 tokenized bonds have been issued for a total of USD $ 8,000 million, but most lack an active secondary market.

The case of the Tokenized Monetary Fund Buidl, of Blackrock, It is mentioned as an exception, although analysts point out that The recent capital outputs show that the impulse is being lost.

Token private assets, such as private credit, also show limitations. While USD $ 15,000 million is reported in tokenized assets, these are concentrated in a few entities and without real liquidity in secondary markets.

The traditional financial system still meets needs

The report states that Many traditional investors simply do not receive any need to adopt solutions Blockchain. The evolution of the financial system, promoted by Fintech technologies, has already allowed important improvements in speed and efficiency of payments and liquidations.

Analysts also point out that there is resistance to transfer the trade of actions or bonds to public networks for transparency issues. The networks Blockchain They can expose trading strategies, while “Dark Pools”Of the traditional system they allow to operate with greater discretion.

This trend is reflected in the increase in the volume of out -of -stock operations in US shares markets, they pointed out.

Regarding tokenized bank deposits, analysts claim that there is no evidence of a significant change by clients or banking entities towards systems based on Blockchain. The traditional system already offers rapid electronic settlement between deposits and financial assets.

In the case of private assets such as private capital or credit, which are normally maintained until maturity and does not require daily quote, the attractiveness of tokenization is even smaller. The constant transparency of markets Blockchain It is not necessarily seen as an advantage.

Enthusiasm not supported by results

In its conclusion, JPMorgan indicates that the limited advance in DEFI and tokenization Not only does it respond to regulatory obstacles, but also to a deeper lack of interest or assessment by institutional investors.

Despite this, the bank remains one of the most active actors in the integration of blockchain technologies. Your specialized unit, Kinexys (previously ONYX), Develop solutions such as Kinexys Digital Payments, Kinexys Digital Assets, Kinexys Liink and Kinexys Labsaddressing payments, tokenization, information exchange and technological development.

However, the general landscape for the massive institutional adoption of DEFI And tokenization remains uncertain and, for now, quite limited.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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