6 trillion USD in assets has yet to migrate to the blockchain on a large scale. Figure co-founder claims the main reasons are user experience, custody, and permissions

Odaily News: Mike Cagney posted on the X platform stating that DeFi is better suited for asset-backed finance (ABF), which can avoid redundant staking, directly improve collateralization, and support self-custody or autonomous venues as well as liquidity staking. Figure has brought ABF on-chain, but the overall market remains in its early stages, with approximately $6 trillion in market value yet to migrate at scale. The five reasons why traditional financial applications have yet to fully move on-chain include poor interface experience, the difficulty of balancing qualified custody with recoverable self-custody, insufficient institutional features such as multi-wallet support and tiered permissions, ongoing regulatory clarification, and the fact that KYC can be addressed through on-chain programmatic screening and wallet-level permissions.