Ethereum’s Joseph Lubin Predicts Wall Street’s Entry Into DeFi and Crypto

In a post shared on X (formerly Twitter), Lubin cited the accelerating momentum behind digital asset treasury strategies as a clear signal that traditional finance is preparing to move on-chain.

IMG TXT: Ethereum co-founder: Wall Street will ‘go deep’ into DeFi

Source : Lub in

He pointed to companies like MicroStrategy (MSTR) and SBET, whose large-scale holdings of Bitcoin, Ethereum, and other digital assets reflect the first wave of institutional DeFi adoption. These treasury models, according to Lubin, are pushing Wall Street to engage more deeply with decentralized protocols, prompting a closer look at how on-chain strategies can optimize yield while managing risk.

“Earnings calls, Bloomberg and CNBC interviews will soon be dominated by talk of digital asset treasury management,”

Lubin wrote.

“Wall Street will care when ‘number go up’ in instruments they can access and analyze.”

Institutional interest is crucial for normalizing crypto and decentralized finance (DeFi), according to Lubin. He believes that as Wall Street engages with crypto, it will lead to greater retail adoption and the development of user-friendly Web3 applications beyond finance. This transition is occurring alongside more favourable regulatory conditions, encouraging developers from both Web2 and traditional sectors to enter the space to create community-focused platforms.

Lubin’s remarks align with broader industry signals, indicating that institutional interest in Ethereum and DeFi is on the rise. According to data from SoSoValue, Wall Street investors have been increasingly allocating capital into spot Ethereum ETFs, which have attracted a cumulative inflow of $3.85 billion as of June 13.

However, the surge in institutional adoption comes amid mixed conditions across the broader Web3 ecosystem. The first quarter of 2025 posed significant challenges for DeFi. According to DappRadar’s Q1 report, the sector experienced a 27% decline in total value locked (TVL), dropping to $156 billion. This decline was driven by a combination of factors, including high-profile security breaches, declining crypto prices, and lingering macroeconomic headwinds.

 

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