Paul Frambot, co-founder and CEO of Morpho, tweeted that he has been in intensive contact with several large institutions over the past week to understand the current DeFi situation. The main conclusions are twofold:
The interest of institutions in DeFi will not disappear, as the fund distributors will not leave. The massive assets under management (AUM), payment, and lending businesses are migrating en masse to on-chain, and fintech companies hope to fully go on-chain, leaving institutions with no choice.
Nevertheless, institutions have completely lost trust in the liquidity pool model. They want to have control over the code, risk management, and compliance, allowing them to flexibly choose the necessary parts while accessing a globally compatible liquidity network.
Paul Frambot believes that the commitment to open financial systems will not fail, as it will create tremendous value for all participants.
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