JPMorgan Chase: DeFi and asset tokenization recovery stalled

Morgan Stanley analysts say that the growth of DeFi and asset tokenization still falls short of expectations, with a weak recovery since the crypto winter of 2022. The current total lock up value (TVL) of DeFi has not recovered to its 2021 high, mainly driven by native crypto users and retail investors, with institutional adoption still lagging behind. The report points out that regulatory fragmentation, legal uncertainty of on chain assets, and security of smart contracts are the main obstacles.