Banks and Fintech Firms Seek to Integrate DeFi Under Compliance Frameworks

Financial institutions are increasingly exploring ways to bring decentralized finance (DeFi) into their offerings, leveraging regulatory clarity from the TRUMP administration's crypto-friendly stance. Blockchain development firm Alchemy reports growing interest from major players like JPMorgan, Fidelity, and Goldman Sachs in creating compliant on-ramps to DeFi protocols.

The trend, dubbed 'DeFi mullet' by Alchemy, involves hiding complex smart contract interactions behind traditional finance interfaces. This approach could bridge the gap between crypto-native users and institutional investors while maintaining necessary compliance controls.

Alchemy CTO Guillaume Poncin observes that firms aim to let users deploy fiat holdings into DeFi strategies without requiring technical expertise. The development signals a maturation phase for crypto markets as infrastructure providers position themselves as the 'AWS of blockchain'.