JPMorgan: The growth rate of DeFi and asset tokenization is still disappointing

ChainCatcher news, according to CoinDesk, JPMorgan analyst Nikolaos Panigirtzoglou stated in a research report that the growth of decentralized finance (DeFi) and asset tokenization remains disappointing, with the recovery since the 2022 crypto winter stagnating.

The report pointed out that the total value locked (TVL) in DeFi has not yet recovered to the highs of 2021, and most current activity is still primarily driven by crypto-native users and retail investors. Although infrastructure with compliance capabilities, such as permissioned lending pools and KYC-supported treasuries, has been developed, institutional adoption still lags behind.

The analyst noted that major obstacles remain, including regulatory fragmentation, legal uncertainty regarding on-chain assets, and concerns about the security of smart contracts.