66% of Wall Street is Already in DeFi | Paradigm’s 2025 Survey with Dan Robinson & Justin Slaughter

This episode explores the burgeoning relationship between traditional finance (TradFi) and decentralized finance (DeFi), specifically focusing on a Paradigm policy team survey of 300 TradFi professionals. Against the backdrop of increasing pro-crypto regulation, the survey reveals surprisingly high levels of TradFi engagement with DeFi; two-thirds of respondents are actively researching or experimenting with DeFi technologies. More significantly, the most popular DeFi applications among TradFi firms include tokenization of assets (especially stablecoins and, to a lesser extent, bonds), decentralized exchanges, and lending/borrowing platforms—areas that align with core interests of crypto-native DeFi users. As the discussion pivoted to the future, a clear trend emerged: while short-term impact is perceived as minimal, the long-term outlook is overwhelmingly positive, with a substantial portion of respondents anticipating DeFi to be critically important to their businesses within the next 15 years. For instance, the report highlights the potential for significant cost reductions and efficiency gains through faster settlement times and reduced manual processes. In contrast, the report also emphasizes the regulatory hurdles that remain, particularly concerning the tokenization of assets beyond stablecoins and the need for clearer guidelines on DeFi participation for regulated entities. What this means for the future of finance is a likely convergence of TradFi and DeFi, driven by the mutual benefits of increased efficiency, cost reduction, and the expansion of tokenized assets on public blockchains.