Ethereum co-founder and ConsenSys CEO Joseph Lubin has made a bold prediction: Wall Street is heading deeper into Ethereum and decentralised finance (DeFi). Speaking at the European Blockchain Convention in Barcelona, Lubin argued that traditional finance isn’t just dipping its toes in.
It’s preparing to dive headfirst into crypto, and Ethereum is at the centre of that shift. His remarks add weight to a growing narrative that institutional finance is warming up to crypto beyond Bitcoin, especially as decentralised systems mature and regulatory clarity slowly emerges.
Ethereum and DeFi as The New Financial Rails
Lubin highlighted Ethereum’s role as more than just a cryptocurrency platform, calling it the “settlement layer” of the new internet and financial system. He described Bitcoin and Ethereum as “crypto treasuries” for institutional players, a term that suggests these assets are seen as reserves or stores of value akin to traditional government bonds or precious metals.
In this vision, DeFi, built on Ethereum, becomes Wall Street’s gateway to programmability, permissionless lending, and tokenized assets.
This comes as the DeFi ecosystem continues to expand, with total value locked (TVL) surpassing $90 billion across protocols like Aave, Compound, and Uniswap. However, according to Lubin, the real breakthrough will come when Wall Street no longer views DeFi as a fringe experiment but as a foundation for the next-generation financial system.
Regulatory Clarity as a Catalyst
A major barrier to institutional adoption has been regulation, but Lubin believes the tide is turning. He noted recent developments involving the U.S. Securities and Exchange Commission (SEC), including its backtracking on previous enforcement approaches and the growing acceptance of crypto-related ETFs, as positive signals.
As more frameworks emerge to define what is permissible, Wall Street firms — always risk-conscious — will gain the confidence to invest and build in the space. Lubin went as far as saying that regulation could accelerate, not hinder, Ethereum’s growth in the institutional arena.
Infrastructure Is Ready, Now It’s About Timing
For Lubin, the infrastructure for DeFi is already in place. Ethereum’s transition to proof-of-stake, the rise of Layer 2 solutions like Optimism and Arbitrum, and the increasing interoperability between DeFi protocols have made the space more scalable, secure, and user-friendly.
The missing piece, he says, is mainstream confidence, and Wall Street is close. Institutional interest in tokenisation, stablecoins, and yield-generating assets is rising fast. With proper due diligence and risk frameworks in place, Ethereum may soon become as integral to financial infrastructure as SWIFT or clearinghouses are today.
Joseph Lubin’s prediction isn’t just speculative — it reflects a growing reality. Wall Street isn’t just aware of Ethereum and DeFi; it’s preparing to adopt and reshape them. As the lines between traditional finance and crypto continue to blur, Ethereum stands poised to serve as the foundational layer of the new global economy.
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