JPMorgan: Growth of DeFi and Asset Tokenization Remains Disappointing

According to ChainCatcher, as reported by CoinDesk, JPMorgan analyst Nikolaos Panigirtzoglou stated in a research report that the growth of decentralized finance (DeFi) and asset tokenization remains disappointing, with the recovery since the 2022 crypto winter having stalled.

The report notes that the total value locked (TVL) in DeFi has yet to return to its 2021 peak, and that most current activity is still primarily driven by crypto-native users and retail investors. Although compliance-ready infrastructure has been developed, such as permissioned lending pools and KYC-enabled treasuries, institutional adoption continues to lag behind.

The analyst pointed out that major obstacles persist, including regulatory fragmentation, legal uncertainty surrounding on-chain assets, and concerns over smart contract security.