Why Institutions Are Betting on Blockchain and DeFi Despite the Risks
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Despite high-profile exploits, security concerns, and regulatory uncertainty, global institutions continue to enter the decentralized finance (DeFi) and blockchain space. Why?
CCN spoke with Clare Adelgren, Global Head of Blockchain Sales and Operations at EY, to explore the motivations behind institutional adoption, the challenges of interoperability, privacy, and governance, and the future of blockchain in payments, ESG, and supply chains.
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EY began its blockchain journey nearly ten years ago, a lifetime in tech terms. For Adelgren, that longevity is no accident.
“We started our journey in blockchain 10 years ago. So we’re just coming up to our 10th anniversary…10 years in tech is a long time,” she said. “We’ve invested very heavily in building out our products and solutions because we’ve always believed enterprises need products available for them to use in a very consumable way on a public blockchain,” Adelgren noted.
From smart contract auditing to asset traceability tools, EY is positioning itself not just as an advisor, but also as a builder.
Why Institutions Step into DeFi Despite the Risks
Even as exploit losses continue to make headlines, institutions are not backing away from DeFi. Adelgren believes the underlying value proposition is too compelling to ignore.
“The long and short of it is that it’s a very compelling value proposition,” she explained. “It provides you with rails that are 24 hours a day on instant payments. Everyone that’s worked in financial services knows how long we’ve had that debate about instant and near-instant payments. But this is a very real value proposition.”
She points to the steady maturing of technology, and the recent catch-up in regulation, as factors enabling broader adoption.
Blockchain’s Role in ESG and Combating Greenwashing
One of the most pressing enterprise use cases lies in sustainability and supply chains. For Adelgren, blockchain’s transparency is uniquely suited to ESG reporting and compliance.
“It’s the first time that enterprises are challenged with the idea that they need to be able to provide data that has to be accessed by multiple stakeholders,” she said. “It’s super important that we know the authenticity of it, that we’re able to see has it been changed, where did it come from, whose data was it.”
She points to tokenized product passports, including carbon and battery passports, as examples of how blockchain can simplify overwhelming reporting requirements.
The Biggest Challenges: Interoperability, Privacy, and Skills
Adelgren stresses that blockchain adoption is not just about technology, it requires new processes, frameworks, and skills across entire organizations.
“You also need to educate the rest of your organization. So it touches on everybody. It touches on your procurement. It touches on your finance team, your treasury team. It touches on your legal team,” she explained. “Integrating this new functionality into the frameworks you’ve built out over many years is essential.”
She notes the shortage of blockchain developers but highlights the broader need for education across compliance, risk, and finance teams.
The Next Frontier: Payments, Digital Identity, and Beyond
Looking forward, Adelgren sees payments as the next major frontier, driven by stablecoins and institutional demand.
“Stablecoins pave the way for payments. And payments really touch on all sectors. It touches on all industries. And you see a segue in there for a tremendous amount of change,” she said.
From there, she envisions supply chain traceability, ESG solutions, and decentralized identity converging into a new kind of infrastructure, what she calls an “ERP between enterprises.”
Conclusion
For Adelgren, blockchain’s future lies in solving real enterprise problems, whether in finance, compliance, or sustainability. The journey is far from over, but the momentum is clear.
“It’s solving a problem in a way that makes life easier,” she said. “We’ll see it becoming part of our lives in a very similar way to AI.”
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.
She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.
Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.
Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.
She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.
Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.
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