{"id":40974,"date":"2025-08-07T13:17:00","date_gmt":"2025-08-07T13:17:00","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40974"},"modified":"2025-08-07T13:17:00","modified_gmt":"2025-08-07T13:17:00","slug":"decentralized-finance-and-tokenization-growth-still-disappoints-jpmorgan","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40974","title":{"rendered":"Decentralized Finance and Tokenization Growth Still Disappoints: JPMorgan"},"content":{"rendered":"
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The growth of decentralized finance (DeFi) and asset tokenization continues to underwhelm, JPMorgan’s Nikolaos Panigirtzoglou said in a research report Wednesday, citing the stagnant recovery since the 2022 crypto winter.<\/p>\n

Total Value Locked (TVL) in DeFi remains below 2021 highs, with most activity still driven by crypto-native and retail users, the report noted.<\/p>\n

Institutional adoption has lagged despite the development of compliance-ready infrastructure, such as permissioned lending pools and KYC-enabled vaults, Panigirtzoglou wrote.<\/p>\n

Major barriers remain. Institutions face regulatory fragmentation, legal uncertainty around on-chain assets, and concerns about smart contract security, the analysts wrote. As a result, most institutional crypto activity remains concentrated in bitcoin (BTC).<\/p>\n

Tokenization has also struggled to deliver. While the sector has seen some traction, with $25 billion in tokenized assets, $8 billion in tokenized bonds, and growing adoption in money market funds, most initiatives remain small, illiquid, or experimental, the bank said. Prominent efforts like BlackRock\u2019s BUIDL<\/a> and Broadridge\u2019s Distributed Ledger Repo<\/a> (DLR) platform offer efficiency gains, but lack scale.<\/p>\n

Panigirtzoglou noted that in private markets, tokenization is heavily concentrated among a few players and lacks meaningful secondary market activity.<\/p>\n

Many traditional investors remain skeptical, especially given blockchain\u2019s transparency, a drawback for institutions that favor opaque trading venues like dark pools, according to the report. The continued rise of off-exchange equity trading illustrates this preference.<\/p>\n

Despite regulatory initiatives like the SEC\u2019s \u201cProject Crypto<\/a>,\u201d Panigirtzoglou doubts whether rule changes alone can overcome the deeper issue: traditional finance doesn\u2019t yet see a clear need for blockchain. <\/p>\n

Fintech has already improved speed and efficiency within the current system, reducing the urgency to adopt tokenized alternatives, the report added.<\/p>\n

Read more: SEC Chief Paul Atkin’s Project Crypto Flying Under Radar Amid Market Selloff: Bernstein<\/a><\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The growth of decentralized finance (DeFi) and asset tokenization continues to underwhelm, JPMorgan’s Nikolaos Panigirtzoglou said in a research report Wednesday, citing the stagnant recovery since the 2022 crypto winter. Total Value Locked (TVL) in DeFi remains below 2021 highs, with most activity still driven by crypto-native and retail users, the report noted. Institutional adoption […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-40974","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40974"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40974\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}