Emerging regulatory frameworks, such as the EU’s Markets in Crypto-Assets (MiCA) and Singapore’s Payment Services Act (PSA), are providing much-needed clarity for institutional adoption of decentralized finance (DeFi). Historically, private blockchains have been the go-to choice for institutions, serving as secure and compliance-friendly sandboxes. However, their restricted and siloed nature limits participation, leading to low liquidity, inefficient price discovery, and volatility for otherwise stable assets. With increased regulatory clarity, decentralized blockchains like Ethereum or Solana will likely become the favored path for institutions looking to participate in DeFi. The shift towards public blockchains will catalyze institutional DeFi adoption by providing a more open, liquid, and efficient ecosystem for trading and price discovery.
Posted inCrypto Hot News
