Finally technology companies (fintech) can move away from classic loan services, because decentralized alternatives offer more available loans with smaller fees.
Decentralized loan reports (DEFI) allow users to borrow and borrow their cryptocurrency for passive income in a way without consent, through clever contracts instead of many financial intermediaries.
The Growing Efficiency and Accessibility of Defi Lending Protocols May Inspire More Fintech Companies to the Opt for Them Over Centralized Lending Alternatives, According to Merline Egalite, Co-Founder of Morpho, The Second-Largest DecentRized Lending Protocol.
Cointelegraph said during an exclusive interview at ETHCC 2025:
“FinTechs realized that DEFI integration is a strategic move. If they do not do it, they will be behind others, because the fintechs compete with UX and the product that they give users.”
“Fintechs realize that DEFI can provide a higher foot,” Egalite explained, adding that DEFI adoption can facilitate financial institutions “provide the best financial products” in terms of loans and trade.
He added that this will be inspired by the lion’s share of global fintech companies to migration to DEFs over the next three years.
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Morpho is the second largest loan report in the cryptographic industry worth over $ 5.5 billion in total blocked value (TVL) in 20 blocks, behind the AAVE -leading industry in the $ 31 billion industry, shows data on Donnelam data.
DEFI loans can be an vital line of financial life for global citizens without access to classic banking infrastructure.
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Without the DEFI permission, it helps to bypass classic banking restrictions
More and more fintech companies recognize the advantages without the consent of DEFI, which removes financial intermediaries and a centralized risk associated with the loan and loan process.
Egalite said that fintech using classic banking rails still risk losing access to a license or application programming interface (API), adding:
“So you are addicted to large banks? In DEFI, you are not afraid of it because there are no intermediaries. You just trust the code yourself.”
While FinTech companies already recognize these advantages, regulated performance products can inspire even more financial institutions to examine DEFI loans in the future, added Egalite.
According to Defillam data, DEFI loans increased to a modern cumulative highest all time in the amount of $ 66.7 billion on TVL.
Aave Protocol $ 31.7 billion TVL currently accounts for 47% of DEFI’s total credit value, while Morpho $ 5.5 billion accounts for over 8.2%.
This meant a significant recovery of cryptocurrency loans, in which the decline begins in 2022, when centralized finances (CEFI) Genesis, Celsus Network, Blockfi and Voyager submitted a request for bankruptcy within two years as cryptocurrency valuations collapsed.
https://www.youtube.com/watch?v=ndnryf5nlkw
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