A new report from Allium, a blockchain querying platform, shows that traditional finance (TradFi) professionals are now embracing decentralized finance (DeFi) as the future.
Allium surveyed 300 financial experts across different institutions and regions. And the study showed that most now see DeFi as an important upgrade to the world’s financial system, which currently faces multiple issues.
1/ TradFi has decided: DeFi is inevitable.
Announcing “TradFi Tomorrow: DeFi and the Rise of Extensible Finance” with @paradigm. Huge thanks to @JBSDC, @brendanpmalone, and the rest of the Paradigm team for making this happen.
Read the full report here:https://t.co/HUxl4jvQV7 https://t.co/rHZezQ1JCV pic.twitter.com/ZqQ5Stfk4V
— Allium (@AlliumLabs) March 20, 2025
Some traditional financial systems face troubles such as high costs and slow processes. However, experts believe DeFi can help address these concerns by improving risk management and ensuring fast transactions. Allium’s research showed that over two-thirds of TradFi firms are already researching or investing in DeFi.

Public Blockchains Over Private Ones
In the past, some banks tried to build private blockchains, thinking they could control the tech while still benefiting from blockchain’s features. But the report shows that most TradFi professionals now favor public, permissionless blockchains. They see these as more secure, transparent, and efficient for smart contracts and asset tokenization.

What TradFi Finds Most Valuable in DeFi
The report highlights that TradFi firms are most interested in three areas:
- Stablecoins
- Tokenized assets
- Decentralized exchanges (DEXs)

These are key elements in integrating DeFi into mainstream finance and boosting global market activity.

The Biggest Challenge: Regulations
Despite growing interest, regulations remain a major challenge. Many financial institutions want to adopt DeFi, but regulatory uncertainty holds them back. The report calls for policymakers to create clear rules that allow TradFi firms to safely explore DeFi’s benefits.
Final Thoughts
DeFi is no longer just a trend. It’s a shift that TradFi can’t ignore. The report noted that it is only a matter of time before DeFi becomes a core part of the financial world.
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