Deep Tide TechFlow message. On July 14, a16z posted that traditional financial institutions are not integrating with decentralized finance; instead, they are selectively adopting blockchain capabilities that can fit their control, compliance, and operational requirements, while removing core DeFi features such as open access, anonymity, and trustless execution. The article said the main motivations for institutions to use blockchain are to reduce costs, improve settlement efficiency, expand distribution capabilities, and strengthen customer relationships. Therefore, they are more likely to drive the rise of “programmable financial infrastructure” that is built on blockchain rails but optimized for institutional constraints, rather than directly adopting existing DeFi systems.

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