Eric Chen: Institutional investors will help mass adoption of DeFi – Bits Media

The co-founder of the blockchain company Injective Labs is confident, that the transition of traditional financial companies to DeFi will significantly accelerate the development of the industry.

Injective Labs CEO Eric Chen (Eric Chen) stated, what about the decentralized finance industry (DeFi) there are problems with large commissions, scalability and liquidity.

Now, according to Chen, the entire DeFi industry is focused on solving these problems, however, progress is slow:

“We still have many problems to solve, before billions of users join DeFi. Over time, the problems of high fees and scalability will become more pressing. From that, will it be possible to solve them?, The future of the industry depends".

According to Chen, The industry is now growing due to investments from institutional investors. Traditional financial institutions, joining DeFi, Chen says, will still play an important role for the development of the industry in the future. The decisive factor for such organizations is a well-regulated environment, therefore, the fight against money laundering and the development of the “Know Your Customer” principle in the blockchain industry will push traditional companies towards DeFi, businessman thinks.

The head of Injective Labs added, that DeFi is much easier to regulate, than traditional financial systems. Decentralized Finance Mission, Chen says, is that, to provide secure and transparent financial services. Therefore, it will be easier for regulators to work with DeFi, rather than with “outdated financial structures”.

Recall, Previously, DeFi company Scallop joined the Payment Card Security Standards Council.