The following is a guest article from Vincent Maliepaard, Marketing Director at IntoTheBlock.
As Bitcoin surpassed its all-time high earlier this year, driven by institutional interest, many expected a similar surge in the decentralized finance (DeFi) space. With DeFi surpassing $100 billion in total value locked (TVL), it was the perfect time for institutions to jump on board. However, the anticipated flood of institutional capital into DeFi has been slower than predicted. In this article, we’ll explore the key challenges hindering institutional DeFi adoption.
Regulatory Hurdles
Regulatory uncertainty is perhaps the most significant roadblock for institutions. In major markets like the U.S. and the EU, the unclear classification of crypto assets—especially stablecoins—complicates compliance. This ambiguity drives up costs and deters institutional involvement. Some jurisdictions, such as Switzerland, Singapore, and the UAE, have embraced clearer regulatory frameworks, which has a
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