Morpho CEO: Institutional Entry into DeFi is Inevitable, Control and Compliance are Core Demands

On April 27, Morpho CEO Paul Frambot posted on X, stating that in the past week he has communicated with several large institutions to understand their views on the current DeFi situation, with the following core conclusions. First, institutional interest will not disappear. The reason is simple: distribution channels will not vanish — massive assets under management (AUM), payment, and lending operations are moving on-chain. Almost all fintech companies aim for full on-chain integration. For institutions, this is not a question of ‘whether to do it,’ but rather ‘it must be done.’ Second, they have lost trust in the pool/hub model. Institutions and distributors want to control everything, including control over the code, control over risks, and control over compliance. At the same time, they seek flexibility, meaning they want to be able to isolate their own business and connect to a global liquidity network that is compatible with their operations.

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