Why Blockchain’s Mechanics Reject Fractional Reserves
This report unpacks the economic realities of a fully-funded blockchain world. From on-chain capital inefficiencies to institutional barriers and hybrid solutions, it analyzes "inefficiency" as a deliberate, structural feature and discusses potential improvements to DeFi’s capital efficiency.
Inside This Report
Capital Without Credit
Blockchains demand real assets to move value; no rehypothecation, no central bank liquidity. This is trustless design, but it creates friction.
The Cost of Prefunding
Trading, settlement, and commerce all face capital drag in a world where every transaction must be collateralized in advance.
Bridging the Divide
Institutions want in but regulatory, legal, and operational frictions make access hard. The report looks at solutions like hybrid infrastructure and regulated post-trade systems.
Rethinking Capital Efficiency
Ideas like yield-bearing collateral, programmable credit markets, and omnichain liquidity show how DeFi can evolve without compromising its core principles.
Why Institutional Leaders Need This Report
Comprehensive Understanding
Get a thorough overview of DeFi’s evolution and its potential integration into the broader financial system.
Actionable Insights
Discover strategic opportunities and technologies that institutions can implement today to capitalize on DeFi innovations.
Clear Path Forward
Learn how the industry is evolving and position your organization to take advantage of emerging DeFi innovations.
