Morpho CEO Discusses Institutional Interest in DeFi

Morpho CEO Paul Frambot recently shared insights on X regarding discussions with several large institutions about the current state of decentralized finance (DeFi). According to Odaily, Frambot highlighted two main conclusions from these conversations. Firstly, institutional interest in DeFi remains strong. This is attributed to the enduring nature of distribution channels, with significant assets under management, payments, and lending activities increasingly moving on-chain. Nearly all fintech companies are aiming for full on-chain integration, making it a necessity rather than a choice for institutions. Secondly, there is a growing distrust in the pool/hub model. Institutions and distributors are seeking greater control over code, risk, and compliance. They also desire flexibility to isolate their operations and connect with globally compatible liquidity networks.