The decentralized finance (DeFi) sector continues to impress with its dynamic development and innovations, attracting billions of dollars in capital. However, what exactly is the main driving force behind this growth? According to Sidney Powell, head of Maple Finance, the key driver is institutional adoption and the growing demand for tokenized real-world assets (RWA).
Powell noted that the initial DeFi boom was driven by retail investors and enthusiasts, but for further scaling and stabilization of the market, the involvement of major players from the traditional financial system is necessary. This is where RWA plays a crucial role. The tokenization of real-world assets, such as real estate, bonds, commodities, or even corporate loans, opens up opportunities for institutional investors to profit in a decentralized environment while using familiar and understandable assets.
This shift from purely crypto-oriented assets to 'digitized' real assets makes DeFi more attractive, predictable, and less volatile for institutions. Maple Finance, which itself specializes in institutional lending in DeFi, is a prime example of this trend, paving the way for billions of dollars in the sector.
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