Institutional DeFi Ready, But Hurdles Remain

Zircuit co-founder Jan Gorzny says that the technology for institutional DeFi is now ready, and that the last hurdles are related to privacy and Know Your Customer (KYC) regulations.

The 'tech blockers' that previously prevented institutions from participating in DeFi have largely disappeared, according to Gorzny. He believes that most of the technical issues have been resolved, leaving only a few remaining challenges.

Gorzny pointed out that composability, which allows protocols to connect instantly without permission, is an issue when identity checks are required. This could limit DeFi's native primitives and composability.

However, Gorzny believes that institutional involvement is crucial for growing the DeFi space. He thinks that institutions will only participate in a permissioned version of DeFi, rather than a permissionless one.