Group 1: Market Growth and Projections - Decentralised finance (DeFi) transaction volume is expected to exceed $3 trillion by next year, with total value locked across blockchain networks projected to reach $500 billion by 2026 [1][2] - Fundraising for DeFi-linked projects is anticipated to rise to $40 billion next year, doubling from approximately $20 billion in 2025, driven by capital injections from token sales and venture capital [2] Group 2: Hybrid Finance and Adoption - A hybrid finance model is expected to emerge, where traditional banks utilize DeFi smart contracts for settlement and yield, with the number of hybrid projects involving major banks projected to at least double by 2026 as regulatory clarity improves [3] - Real-world asset tokenisation is forecasted to grow from $1.1 trillion currently to $2 trillion next year, indicating a convergence of traditional markets with blockchain finance [4] Group 3: Leading Sectors and Market Structure - Key sectors leading the growth in tokenisation include tokenised funds, stocks, real estate, corporate debt, and money market funds, which will bridge traditional finance and DeFi, enhancing liquidity for both institutional and retail participants [5] - By mid-2026, DeFi wallets are expected to reach 12 million, although only 25-35% are projected to be unique active users, indicating a market stabilising in a more data-driven and utility-focused manner [6]

Core Insights - The DeFi market is projected to reach $2 trillion by 2028, driven by Wall Street's increasing adoption of blockchain technology, with a potential increase of over 5,600% [1] - The stablecoin market is expected to grow to nearly $308 billion by 2025, supported by a more favorable US government stance [1][2] Market Composition - Tokenised money-market funds powered by stablecoins are anticipated to constitute $750 billion of the $2 trillion DeFi market, alongside $750 billion in tokenised equities and $250 billion in tokenised funds [2] - The remaining $250 billion will come from less liquid segments such as private equity, commodities, corporate debt, and real estate [3] Drivers of Growth - The DeFi boom is attributed to three main factors: increased awareness in developed markets, onchain liquidity, and the expansion of onchain lending [4] - Key players like Ethereum and DeFi protocols such as Aave are expected to emerge as winners in this evolving landscape [4] Institutional Engagement - The Ethereum Foundation has launched a new platform, "Ethereum for Institutions," aimed at assisting traditional financial institutions in integrating Ethereum's blockchain [5] Regulatory Environment - The US government's regulatory approach has shifted towards a more supportive stance, with pro-crypto appointments and significant legislative developments, including a stablecoin bill [6][7] - However, there are concerns regarding the potential lack of regulatory clarity if changes are not implemented before the November 2026 midterm elections [7]