Jack Paul 
Jed Finn, the head of asset management at Morgan Stanley, shared his views on the future of decentralized finance (DeFi) during the Consensus 2026 conference. He predicted that within the next five years, DeFi would become fully integrated into the traditional financial system. Finn suggested that the term “DeFi” might even fade away as a distinct label.
Traditional Finance Absorbing DeFi
According to Finn, big banks and financial institutions are increasingly embracing blockchain-based services. Over time, they will incorporate these services into their existing infrastructure. He sees DeFi not as a separate sector but as a natural part of how finance works. The Morgan Stanley executive put it simply: “Traditional finance will absorb DeFi.”
A New Crypto Product in the Works
Finn also revealed that Morgan Stanley is developing a new financial product focused on cryptocurrencies. The system would let clients transfer crypto assets from various platforms directly into their Morgan Stanley accounts. From there, these assets could be converted into exchange-traded funds (ETFs). Users could then use those ETFs as collateral to get loans. This setup, Finn argued, gives investors major advantages. They can access liquidity without needing to sell their underlying assets, and the structure avoids triggering a taxable sale.
Wall Street Warming Up to Crypto
The recent wave of interest from major financial institutions is helping push the crypto sector toward greater institutional adoption. Analysts expect the ties between traditional banks and blockchain-based finance to grow even stronger in the coming years. It’s worth noting that this article is not investment advice.