DeFi’s Next Evolution: Institutional Adoption and Regulatory Frameworks Take Center Stage

Decentralized finance (DeFi) and traditional finance are no longer ideological opposites. The narrative has shifted from confrontation to convergence, with institutional players like BlackRock exploring tokenized funds on public blockchains. Regulatory frameworks in Asia and Europe are accelerating this integration, signaling a maturation of the sector.

East Asia’s on-chain activity—two-thirds of which is driven by non-retail participants—highlights the growing demand for utility and regulatory clarity. The next phase of DeFi won’t replace traditional finance but will emerge from their intersection, combining transparency and composability with institutional trust and scale.

Yet barriers remain. Many DeFi products still cater to developers rather than mainstream users, with clunky interfaces and fragmented experiences. For DeFi to achieve mass adoption, it must prioritize accessibility alongside innovation.