TechFlow news, August 7 — According to CoinDesk, a recent research report by JPMorgan Chase indicates that the development of decentralized finance (DeFi) and asset tokenization has yet to meet expectations. The report shows that the total value locked (TVL) in DeFi ecosystems remains below its 2021 peak, with primary activity still concentrated among crypto-native users and retail investors.
Nikolaos Panigirtzoglou, head of research, stated that despite the development of compliant infrastructure such as permissioned lending pools and KYC-enabled vaults, institutional adoption remains low. Key barriers include fragmented regulation, unclear legal status of on-chain assets, and concerns over smart contract security.
Regarding asset tokenization, although there are currently around $25 billion in tokenized assets and $8 billion in tokenized bonds, most projects remain small-scale or in experimental stages. The report notes that traditional financial institutions lack strong incentives to adopt blockchain technology, as existing fintech solutions have already significantly improved the efficiency of the traditional financial system.
