Arc Invest: Institutions Will Favor DeFi Infrastructure Over Regulated Blockchain

Arc Invest refuted a16z Crypto's claim that traditional financial institutions will adopt regulated blockchain infrastructure over decentralized finance (DeFi). On June 16, blockchain media Coin Telegraph reported that Arc Invest Research Head Lorenzo Valente argued institutions will increasingly rely on DeFi infrastructure. Valente, in an X post, claimed open networks like Ethereum have already demonstrated better results than traditional blockchain efforts, citing the growth of tokenized assets on these platforms. He positioned native crypto companies like Circle and Coinbase as primary builders of next-gen financial infrastructure, arguing traditional financial institutions would lag. a16z Crypto previously argued traditional institutions would selectively adopt blockchain technology compliant with existing regulations, but Arc Invest countered that institutions would layer compliance and corporate controls atop DeFi infrastructure.