The landscape of institutional finance is undergoing a transformation as traditional hedge funds increasingly turn their attention to Decentralized Finance (DeFi). Historically viewed with caution due to compliance concerns, DeFi is now becoming a strategic focus, spurred by ongoing regulatory developments.

Specifically, among hedge funds that have already ventured into digital assets, nearly half (43%) are poised to integrate DeFi into their operations within the next three years. This expansion is expected to materialize through mechanisms such as tokenized funds and tokenized assets, signaling a maturing approach to digital finance within traditional investment circles.

The shift indicates a growing confidence in the DeFi space, moving beyond its experimental phase towards a more established role as a blueprint for future financial integration. This evolution is closely tied to a changing regulatory environment, which is gradually providing the clarity and frameworks necessary for institutions to participate more comfortably and securely in the decentralized ecosystem.