The Funding: Why TradFi giants like BlackRock are buying DeFi tokens now

Traditional finance (TradFi) giants like BlackRock, Citadel Securities, and Apollo Global Management have recently disclosed purchases of DeFi governance tokens, marking a shift from previous equity or venture investments. Investors largely view these acquisitions not as a major bet on DeFi as an asset class, but as a strategic move to secure access to the specific protocols they intend to use as on-chain infrastructure for distributing their tokenized products. This move is facilitated by improved custody and operational infrastructure over the last two years, alongside positive regulatory signals, such as the repeal of SAB 121 and the SEC's Project Crypto taxonomy suggesting most governance tokens are not securities. While some see this as a structural shift in institutional engagement, others caution that the small scale of current allocations makes it premature to declare a fundamental change. For governance tokens to truly function like strategic equity, clearer legal rights and value-accrual mechanisms, like functioning fee switches, are needed. The muted market reaction reflects that token economics haven't changed, and future institutional adoption hinges on clearer value capture and regulatory clarity, such as the passage of the CLARITY Act.

(Source：The Block)