JPMorgan Points Out Key Barriers to Progress in DeFi
Date: 2025-08-12 Author: Henry Casey Categories: BUSINESS
JPMorgan experts note that despite the growing interest in digital assets, the decentralized finance (DeFi) sector continues to stagnate. In their opinion, the main problem is not so much regulatory restrictions as the weak involvement of institutional investors accustomed to working in the traditional financial environment.
Experts say that one of the key factors hindering the inflow of capital into DeFi is the low level of legal protection for investments in blockchain-based projects. Investment funds and corporations prefer more understandable and proven instruments - in particular, products related to Bitcoin. As a result, most of the inflow of funds into the crypto industry is concentrated in the BTC segment, while decentralized platforms are experiencing a lack of attention from large players.
It remains an open question how exactly regulators intend to protect the interests of investors who have come from the traditional financial sector and want to invest part of their capital in DeFi projects. JPMorgan emphasizes that without a clear legal framework and understandable protection mechanisms, such investors will be wary of new financial instruments.
According to experts, another problem is the lack of understanding of the value and potential of DeFi among traditional market participants. For most of them, the concept of decentralized protocols devoid of central control seems too risky and difficult to evaluate. This makes it difficult to make investment decisions, especially when it comes to large amounts.
However, there has been a gradual shift in the perception of cryptocurrencies in the financial sector. Earlier, JPMorgan Chase CEO Jamie Dimon admitted in an interview with CNBC that he had significantly changed his opinion on digital assets. Although he criticized Bitcoin a few years ago, his position has now become more flexible, which may reflect a general change in attitudes in the banking sector.
Experts believe that the future of DeFi will largely depend on how quickly solutions emerge that can remove key barriers — from legal guarantees to educational initiatives for investors. For now, the sector remains a niche area of the crypto market, unable to compete in terms of capital with Bitcoin and other more established assets.
