Robert Leshner, the creator of the Ethereum-based Compound (COMP) lending protocol, recently expressed doubt about institutional investors’ involvement in the cryptocurrency space. During a panel discussion on the Permissionless Convention in the USA, Leshner voiced his opinion.
Leshner raised concerns during the meeting about the likelihood of businesses showing enthusiasm for borrowing or selling cryptocurrencies like ETH, LINK, and other tokens he called “shitcoins.” However, he emphasised that while businesses might be uninterested in cryptocurrencies, they are intrigued by blockchain technology and the concept of decentralised finance (DeFi). Leshner explained
The idea of DeFi makes them ecstatic. They adore the idea of financial products made in a way that is more durable, transparent, efficient, affordable, and superior.
He made it clear that they are interested in using blockchain technology to trade and borrow traditional property like shares, bonds, currencies, and commodities. This difference in goals was alluded to by Leshner as the “huge divide” that may determine DeFi’s course during the ensuing ten years.
Leshner also thought that the initial wave of DeFi protocols had provided institutional traders with evidence of the viability of tokenized property. Unexpectedly, Leshner founded a new company, called Superstate, to move traditional property onto the blockchain. This happened after he left his position as CEO at Compound Labs in July.
While this was going on, other blockchain consultants disagreed with Leshner’s assessment of institutions’ goals. Co-founder of blockchain information provider Amberdata Shawn Douglass warned against categorising property into “theirs” and “ours” divisions, citing stablecoins as evidence.
Douglass accepted that stablecoins, which stand in for tokenized treasuries, serve as the foundation for transactions in each DeFi protocol. Therefore, he argued, there is no need to split traditional and crypto property.
