Jed Finn, Head of Asset Management at Morgan Stanley, made notable assessments about the future of decentralized finance. Speaking at the Consensus 2026 conference, Finn stated that decentralized finance will be fully integrated into the traditional financial system within the next five years, and that the term ‘DeFi’ may eventually disappear.
According to Finn, traditional financial institutions will increasingly adopt blockchain-based financial services and integrate them with existing financial infrastructures. He states that at the end of this process, DeFi will not be seen as a separate sector, but as a natural part of the financial world, adding: “Traditional finance will absorb DeFi.”
A Morgan Stanley executive also revealed that the company is working on a new crypto-focused financial product. The new system will allow customers to transfer crypto assets held on various platforms to their Morgan Stanley accounts. These assets can then be converted into Exchange Traded Funds (ETFs). Users can then use these ETFs as collateral to obtain loans.
Finn stated that this model offers significant benefits to investors. He particularly emphasized the ability of investors to access liquidity without selling their underlying assets, noting that this structure also does not lead to a taxable sale transaction.
The recent increase in interest from major financial institutions in crypto assets is accelerating the industrialization process of the sector. Experts expect that the integration between traditional banks and blockchain-based financial applications will deepen further in the coming years.
*This is not investment advice.