Financial technology companies are set to transition to decentralized lending protocols within the next three years. This view was expressed by Merline Egalite, co-founder of Morpho.
Reasons for Transition to DeFi
Merline Egalite stated that DeFi integration is becoming a strategic necessity for fintech companies. Firms that do not adopt these protocols risk falling behind competitors who can offer superior financial products. DeFi lending offers higher interest rates compared to traditional finance.
Impact on Financial Services
The shift towards DeFi protocols will significantly impact the entire financial services market. Traditional banks and investment firms will be pressured to integrate blockchain solutions or lose market share. This change is related to financial institutions beginning to accept DeFi infrastructure.
Trends and Future of DeFi
In 2025, fintech applications are expected to make DeFi accessible to mainstream users. The implementation of the 'DeFi mullet' model will simplify access to financial products without requiring deep understanding of the technology. The appeal of DeFi is likely to increase due to clearer regulatory frameworks.
Thus, the shift of fintech companies towards decentralized finance will not only change the market players but also create new opportunities for users of financial services.
