Podcast

66% of Wall Street is Already in DeFi | Paradigm’s 2025 Survey with Dan Robinson & Justin Slaughter

Defi is Inevitable: Institutions are All In

Apr 24, 2025 • 2 min read

The narrative has shifted. The chant of “tokenize the world” is no longer just a meme—it’s manifesting in boardrooms, trading desks, and regulatory corridors. And Paradigm’s latest report is proof.

In this special episode of Bankless, we sat down with Dan Robinson and Justin Slaughter of Paradigm to discuss their recently released survey, TradFi Tomorrow: DeFi and the Rise of Extensible Finance. Based on responses from 300 global TradFi professionals, this report delivers a compelling message: 66% of traditional financial institutions are already engaged with DeFi in some meaningful way.

The Signal in the Noise

While skeptics may brush off TradFi’s DeFi interest as shallow or PR-driven, Paradigm’s survey makes clear that something deeper is happening. Institutions aren’t just “exploring” DeFi—they're piloting programs, investing in crypto-native projects, building tokenized products, and gearing up for a future on public blockchains.

Among the most engaged sectors:

Asset managers (hedge funds, buy-side firms)
Retail and investment banks
Payment processors like Visa and Mastercard

And what are they excited about? Tokenization of assets, stablecoins, decentralized exchanges, and interoperability were ranked highest—mirroring the areas DeFi natives care about most.

Why Now?

Two words: regulatory clarity.

Under new leadership at the SEC and growing bipartisan interest in crypto legislation, the environment is rapidly changing. The report frames today’s moment as a regulatory “sluice gate” beginning to open—institutions are already lining up. They’re not just waiting for the green light; they’re building infrastructure and forming strategic partnerships so they’re ready to sprint the moment policies land.

DeFi as a Concept, Not Just a Product

Paradigm’s survey didn’t narrowly define DeFi by specific protocols—it embraced it as a broader idea of permissionless, peer-to-peer financial networks. This conceptual approach resonated with TradFi leaders who increasingly see DeFi not as a threat, but as an opportunity to dramatically reduce costs, improve efficiency, and tap into global liquidity.

The big realization? Public blockchains—not permissioned ones—are the future. TradFi is finally moving past the “private blockchain” phase and recognizing the power of open infrastructure and its network effects.

Builders: The Door Is Open

For entrepreneurs and devs, the takeaway is clear: DeFi infrastructure must scale to support real-world assets.

Dan Robinson challenged builders to create protocols that can handle a flood of tokenized instruments—bonds, stocks, derivatives—not just crypto-native tokens. Lending markets, compliance-aware DEXs, and scalable governance frameworks will all be vital.

TL;DR?

TradFi is not just flirting with DeFi. They’re serious. They’re investing. They’re building. The convergence is real.

And if this report is right, we’re not far from a future where the world's biggest financial institutions are operating side-by-side with anon DeFi users—on the same rails, using the same smart contracts, and shaping the same financial future.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

Published in Bankless

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