Key Points
- Sergey Nazarov says that institutional adoption of crypto is inevitable as younger generations start to take more leadership roles.
- DeFi is maturing with more predictable returns and is attracting serious institutional capital.
- Tokenised real-world assets could form a multi-trillion-dollar market, with Chainlink as the bridge.
Web3 continues to gain traction as a new layer of the world’s financial systems.
Chainlink, the decentralised oracle network co-founded by Sergey Nazarov, sits at the centre of this trend.
According to the details of a new podcast with crypto analyst Michael van de Poppe, Nazarov shared his vision of what the future holds for Defi adoption, and why Chainlink is at the centre of that process.
Institutional Adoption is Unstoppable
Nazarov described a future where institutions, DeFi, and tokenised real-world assets converge on blockchains. For him, Chainlink ($LINK) provides the perfect link between trad-fi and defi
Nazarov explained that crypto adoption by major financial institutions is no longer optional. He argued that nearly every institution is already preparing for blockchain integration. ‘
Moreover, this transition is being driven by multiple forces.
Generational change is one of the most important of these. Digital-native professionals are stepping into senior roles across finance and government. They are more open to defi systems and understand the nuances of Web3.
Secondly, government attitudes have been changing across the board. Initial scepticism is starting to give way to practical recognition of blockchain.
Nazarov says that together, these trends are paving the way for crypto and Web3 technologies.
DeFi is Maturing Beyond Speculation
Over the last decade, DeFi has been seen as risky due to its volatility. Nazarov believes that this perception is changing. He sees DeFi moving toward more predictable and stable returns that can attract institutional money.
Institutions want security and transparency, not promises of 1000% yields.
Mature DeFi products can meet these needs. Chainlink’s decentralised oracles, for example, provide accurate data that powers lending rates. Its $LINK cryptocurrency also handles collateral values and market prices.
This reliability is important for building products that institutions can trust.
DeFi has been maturing lately and is no longer viewed as a replacement for traditional finance. Instead, it supports current systems by adding transparency and other benefits.
This trend could unlock strong institutional capital and push DeFi into its next growth phase.
Real-World Assets Could Transform Markets
Nazarov also pointed to tokenised real-world assets (RWAs) as the largest opportunity ahead. Assets like real estate, commodities, intellectual property and equities could all move onto blockchains.
Tokenisation solves many long-standing issues. It allows fractional ownership, easier transfers, and international market access. This could create liquidity in assets that were historically difficult to trade. Nazarov sees this becoming a multi-trillion-dollar market.
The challenge from here is in making sure that the data about these off-chain assets is securely brought onto blockchains. Chainlink solves this problem with decentralised oracle networks.
These oracles deliver tamper-proof data feeds, proof of reserves and event tracking that allows tokenised assets to work.
Chainlink as the Bridge
Nazarov pointed out that Chainlink is not just another blockchain project. It is a part of the market’s main infrastructure. Without secure data feeds, institutions cannot trust blockchain applications.
Chainlink provides accurate price feeds for derivatives and lending markets.
It also delivers proof of reserves for stablecoins and tokenised assets. It tracks external events for insurance and supply chain systems. It also enables cross-chain interoperability so that assets can move across networks without friction.
Looking Ahead
Sergey Nazarov sees a world where Web3 is no longer an experiment. Instead, it is a pillar of finance. Institutions will embrace DeFi for predictable returns, tokenised assets will expand liquidity, and blockchain will offer several benefits at scale.
Chainlink sits at the bottom of this change, with its oracle network providing reliable connections between trad-fi and defi systems.
This transition is already underway, and the infrastructure to support it is being built now.
