ARK Invest rebuts a16z’s view: institutions will adopt public blockchain infrastructure more extensively

Deep Tide TechFlow message: On July 16, ARK Invest challenged a16z’s view that traditional finance will prioritize permissioned blockchains over decentralized finance. ARK Invest argued that institutions in the future will increasingly adopt public blockchain infrastructure rather than limiting themselves to closed permission networks.

Earlier, a16z published an article stating that traditional financial institutions are not merging with decentralized finance; instead, they are selectively adopting blockchain capabilities that can fit their control, compliance, and operational requirements, while removing DeFi core features such as open access, anonymity, and trustless execution. The article said the main drivers for institutions to adopt blockchain include reducing costs, improving settlement efficiency, expanding distribution capabilities, and strengthening customer relationships. Therefore, institutions 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.