Spent the last week calling the largest institutions to get their read on the DeFi situation.
Key takeaways:
1- Institutional interest isn't going away, for a simple reason: distributors aren't going away. Massive AUM, payments, and loans are coming onchain. Every fintech wants to move fully onchain. As an institution, you don't have a choice.
2- That said, they've completely lost trust in pool/hub models. Institutions and distributors want control: over the code, over the risk, over the compliance. With the flexibility to isolate what they want, while plugging into the global network of liquidity that's compatible with them.
The promise of an open financial system is too big to fail: not because of ideology, but because it's going to create an immense amount of value for everybody involved.