A survey conducted by Nickel Digital Asset Management reveals insights into the increasing interest of institutional investors and wealth managers in tokenization and decentralized finance (DeFi). The study involved respondents overseeing a total of $816 billion in assets from major financial centers globally, expressing enthusiasm for the potential of tokenization and DeFi.
The survey indicates that 75% of respondents foresee a rise in the adoption of tokenization in the next five years, with 14% anticipating significant growth during this period. Additionally, 81% of respondents believe that DeFi will transform traditional financial institutions, with 15% predicting major disruptions.
Despite the positive outlook, the study highlights concerns hindering the full integration of DeFi in institutional settings. Primary barriers identified include issues with KYC and AML compliance, technology risks, tax implications, and liquidity constraints. Respondents stress the importance of regulatory clarity and secure custody solutions to encourage greater institutional participation in DeFi. Furthermore, 18% of respondents express the need for specialized talent to navigate DeFi investments.
Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, recognizes the industry's cautious approach to DeFi adoption but emphasizes the potential benefits for early adopters. He notes the increasing interest among investors in tokenization and DeFi opportunities, acknowledging the apprehensions while highlighting the potential rewards for institutions venturing into this evolving space.
The study, conducted in January 2024, involved 200 institutional investors and wealth managers in various financial centers worldwide. It was commissioned by Nickel Digital and carried out by market research firm Pureprofile.
