Even BlackRock Chooses It: Why Are Wall Street Titans Buying DeFi Tokens Now?

▲ BlackRock, DeFi, AAVE, SKY / ChatGPT-generated image

Global asset managers, including BlackRock, are accelerating their accumulation of related tokens as they look beyond simply holding virtual assets and focus on the tangible profitability and infrastructure value of the decentralized finance (DeFi) ecosystem.

According to cryptocurrency-focused outlet The Block on February 23 (local time), traditional financial institutions led by BlackRock, the world’s largest asset manager, have recently expanded their investment horizon to DeFi tokens. Institutions that previously concentrated on securing base assets such as launching spot Bitcoin ETFs are now shifting their attention to protocol tokens that generate real revenue, including Aave (AAVE) and Sky (SKY). Institutional investors believe that the efficient lending and trading systems offered by decentralized finance could become a core component of future financial infrastructure.

At the center of this shift is the on-chain tokenization of real-world assets (RWA). BlackRock CEO Larry Fink has emphasized that the tokenization of all financial assets represents the next stage of the market, underscoring the importance of DeFi technology. BlackRock’s Ethereum-based tokenized fund, BUIDL, has already attracted hundreds of millions of dollars, serving as a bridge between traditional finance and decentralized finance protocols. Institutions are finding appeal not only in depositing assets but also in participating in protocol governance or receiving revenue distributions.

In particular, lending protocols such as Aave are drawing concentrated institutional interest due to their high liquidity and proven security. Aave operates institutional-only pools and has continued efforts to achieve both regulatory compliance and operational efficiency. Investors view DeFi tokens not merely as speculative instruments but as capital assets capable of generating tangible cash flows through platform fees and other mechanisms. Sky is also attracting significant capital inflows, backed by its strong dominance within the stablecoin ecosystem.

Despite the broader downturn in the virtual asset market, the relative resilience of the DeFi sector is further stimulating institutional investment sentiment. Institutions recognize the need to diversify portfolios beyond Bitcoin to manage market volatility and consider DeFi tokens a promising alternative. Asset management experts anticipate that the entry of traditional financial firms will enhance the credibility of the DeFi market and create a virtuous cycle that accelerates liquidity provision. As institutional capital flows in, standardization of related technologies and regulatory frameworks is also expected to gain momentum.

The accumulation of DeFi tokens by traditional financial giants marks a significant milestone signaling the technological maturation of the virtual asset market. The market has moved beyond simple price fluctuations and entered a phase in which value is reassessed based on the practical utility and revenue structures provided by protocols. The actions of major institutions, including BlackRock, demonstrate how virtual assets are becoming an essential component of the mainstream financial system. The decentralized finance ecosystem is now passing a new inflection point of growth, characterized by infrastructure enhancement and broader adoption alongside the influx of large-scale capital.

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