JPMorgan Chase: DeFi and Asset Tokenization Growth Still Disappointing

BlockBeats News, August 7th, according to CoinDesk, JPMorgan analyst Nikolaos Panigirtzoglou stated in a research report that the growth of decentralized finance (DeFi) and asset tokenization continues to disappoint, with the recovery since the 2022 crypto winter remaining stagnant.

The report pointed out that the total value locked (TVL) in DeFi has not yet returned to its 2021 peak, and current activity is still mainly driven by crypto-native users and retail investors. Despite the development of compliance-enabled infrastructure such as permissioned lending pools and KYC-supported treasuries, institutional adoption still lags behind.

The analyst noted that major barriers still exist, including regulatory fragmentation, legal uncertainty around on-chain assets, and concerns about smart contract security.