Shahar Madar from Fireblocks notes that despite institutions' increasing interest in decentralized finance (DeFi), concerns about on-chain transaction risks hinder further adoption.
While DeFi offers potential benefits, institutions are cautious due to the inherent risks associated with on-chain transactions.
Fireblocks is actively working on new platform features to address these concerns and make DeFi more appealing to institutional investors.
Madar highlights the significant stakes involved for institutional investors in DeFi, given the large funds they manage compared to individual consumers.
Despite these risks, institutional DeFi trading on Fireblocks saw a notable 75% increase in the first quarter of 2024, signaling growing confidence in DeFi despite the challenges posed by on-chain risks.