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How Public Blockchains Will Catalyze Institutional DeFi Adoption

The tokenized asset market is expected to grow significantly, reaching $16 trillion by 2030, with public blockchains playing a crucial role in bringing traditional financial assets onto the blockchain. While private blockchains have been popular among institutions due to their security and compliance features, increased regulatory clarity is expected to lead to the adoption of decentralized blockchains like Ethereum and Solana. Institutions like BlackRock and Franklin Templeton are already embracing public blockchains, bringing regulated assets onto public blockchains and driving capital flows into decentralized finance (DeFi). Moving assets onto public blockchains offers greater transparency, interoperability, and efficiency, attracting investors with low-risk, high-quality liquidity. Public blockchains also offer revenue opportunities through global market access and collateralization of tokenized assets. The shift towards public blockchains is transforming the financial system and laying the groundwork for DeFi to become a fundamental part of the global financial markets.

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