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ARK challenges a16z’s view that TradFi will bypass DeFi
ARK Invest’s director of research said public blockchains have already outperformed private initiatives, pointing to growth in tokenized assets on Ethereum and other open networks.
Cointelegraph reports that ARK Invest’s director of research pushed back on a16z crypto’s argument that traditional finance will adopt blockchain via permissioned systems rather than decentralized finance (DeFi). In an X post dated Wednesday, Lorenzo Valente said institutions will increasingly rely on DeFi infrastructure instead of choosing private blockchains.
Valente argued that public blockchains have already performed better than private blockchain efforts, citing the expansion of tokenized assets on Ethereum and other open networks. He also said crypto-native firms such as Circle and Coinbase are better positioned to build the next wave of financial infrastructure.
Cointelegraph adds that a day earlier, a16z crypto said banks and asset managers are not embracing DeFi, but instead are selectively adopting blockchain elements that match existing compliance, governance, and operations.
In a separate response mentioned by Cointelegraph, Sentora co-founder Jesus Rodriguez also disputed a16z’s framing, saying institutions are likely to adopt DeFi’s underlying infrastructure while adding enterprise controls such as compliance and custody.
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