DeFi represents a groundbreaking development, yet its uptake by institutional investors remains modest, according to Schnarch. He noted that existing solutions fail to meet the standards of traditional finance, particularly in terms of compliance and technical robustness.
The strategic shift is seen as a logical reaction to the changing demographics of the DeFi ecosystem, commented Ran Hammer, Orbs’ chief business officer.
Retail participation has dwindled compared with earlier peaks, Hammer observed, noting that the platform has evolved into a key venue for settlement, execution, and interaction among financial institutions. He added that since the DeFi summer, the landscape has transformed into a new financial layer for institutional use, making leadership that understands this environment essential.
The $52 million allocation—Compound’s largest DAO‑approved budget to date—underscores the project’s commitment to its new strategic direction.
Himanshu Sahay, co‑founder and CTO of Arch Lending, said the $52 million and the new institutional expertise constitute a serious step that should improve execution. However, he cautioned that institutions seek more than just credentials—they need robust underwriting structures.
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