Decentralized finance (DeFi) is attracting increasing attention from institutional investors, who are beginning to explore crypto exchange-traded funds (ETFs) and digital asset treasury management. This growing participation reflects a broader trend toward the maturation of the DeFi sector.
As institutions engage more deeply with DeFi, effective risk management practices are becoming essential to build trust and ensure sustainable growth. Proper oversight and safeguards are viewed as key factors for wider adoption of decentralized financial products.
**Why this matters**
The involvement of large investors can bring greater liquidity and stability to the DeFi market. However, without robust risk controls, the sector remains vulnerable to volatility and security issues. Establishing strong risk management frameworks is critical to support the continued development and acceptance of DeFi within mainstream finance.
Source: NewsData