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

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Traditional finance (TradFi) institutions like BlackRock, Citadel Securities, and Apollo Global Management are increasingly acquiring DeFi governance tokens, marking a shift from their previous limited crypto exposure. This move is primarily driven by the need to secure access to infrastructure for distributing tokenized products on-chain, rather than a broad conviction in governance tokens as a new asset class or significant portfolio allocation. Investors note that improved custody infrastructure and growing regulatory clarity, such as the repeal of Staff Accounting Bulletin No. 121 and the SEC’s clarification on token taxonomy, have made direct token ownership more feasible for large, regulated institutions.

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