Institutional DeFi Adoption

Definition ∞ Institutional DeFi adoption describes the increasing engagement of traditional financial institutions with decentralized finance protocols and applications. This involves large entities like hedge funds, asset managers, and banks participating in DeFi lending, borrowing, and trading activities. Their participation often requires specialized infrastructure and regulatory compliant solutions. This trend signals a maturation of the DeFi landscape.
Context ∞ News reports frequently track institutional DeFi adoption as a significant indicator of the mainstream acceptance and legitimization of decentralized finance. Regulatory clarity and the development of institutional-grade DeFi products are key factors influencing this progression. This movement suggests a potential convergence between traditional finance and decentralized digital asset markets.