The bank states that security breaches in DeFi (blockchain-based financial services) and stagnant sector growth are limiting broader participation from institutional investors.
JPMorgan says exploits in DeFi (blockchain-based financial services) and stagnant growth are limiting institutional adoption of the sector. The statement points to two longstanding barriers for larger investors: security risks from protocol hacks and a lack of sustained expansion that would support broader capital allocation. In crypto markets, institutional participation typically depends on stronger risk controls, clearer compliance standards, and more reliable infrastructure.