In 2023, crypto managers and financial institutions have significantly increased their blockchain assets while actively utilizing decentralized finance (DeFi) protocols. A new report from analytics platform Artemis and DeFi platform Vaults highlights this growth.
Growth of Crypto Managers' Assets
According to the report, since January 2023, crypto managers have increased their on-chain asset base from about $1 billion to more than $4 billion. They are actively investing in a wide range of opportunities, including lending platforms.
Changing Institutional Attitudes Towards DeFi
The report points out the shifting perception among crypto institutions in light of recent regulatory policies in the US. DeFi is now seen as a complementary financial layer rather than merely a disruptive space. Institutions have begun using DeFi as 'invisible' infrastructure for their services.
Key Areas of DeFi Usage
Among the main ways institutions utilize DeFi are offering stablecoin yields, crypto yields, and crypto borrowing. These areas facilitate access to DeFi services and enhance the user experience.
Thus, the growing interest in DeFi and crypto managers highlights the changing landscape of the financial sector. By adopting decentralized technologies, institutions are aiding the broader acceptance of cryptocurrencies.
