Institutional DeFi Growth Driven by Secure Self-Custody Wallets
Estimated reading time: 4 minutes
- Institutional interest in decentralized finance (DeFi) is rising, supported by secure self-custody wallets.
- Anchorage Digital launched Porto, a self-custody wallet aimed at institutional traders.
- Regulatory clarity in 2025 has boosted institutional confidence in DeFi.
- Cross-chain interoperability is enhancing transaction efficiency for institutions in DeFi.
- By mid-2025, the total value locked in DeFi surpassed $118 billion, showcasing growing institutional involvement.
Institutional participation in decentralized finance is increasing in 2025, supported by the adoption of secure self-custody wallets. These solutions are enabling institutions to conduct on-chain trading while retaining direct control over their assets. A recent example is the launch of Porto by Anchorage Digital, a self-custody wallet designed for institutional traders on the Derive platform. Announced on June 5, 2025, Porto allows investors to manage their digital assets independently, without relying on third-party custodians and thus reducing counterparty risk[1].
Self-custody wallets like Porto represent a shift in how institutions approach DeFi. In previous years, security concerns and regulatory uncertainties limited institutional interest. Under the self-custody model, institutions hold assets outside exchanges or custodians, which may lower exposure to hacks and mismanagement that can occur with centralized wallets. This approach has become more popular as the number of global crypto users grew to over 560 million by late 2025[2].
Developments in regulations have also influenced institutional adoption. During 2025, more jurisdictions introduced clear guidelines for DeFi activities, assisting institutions with compliance and contributing to greater confidence in the sector[3]. In response, DeFi platforms have implemented additional security and transparency measures, which have helped make the market more accessible to institutional investors[3].
Technical infrastructure within institutional DeFi has continued to evolve. Solutions that enable cross-chain interoperability are now common, allowing institutions to transact across multiple blockchains and access a wider selection of decentralized products with greater efficiency[4]. Decentralized derivatives markets, offering products such as options and futures outside of traditional exchanges, have also attracted significant institutional investment to DeFi platforms[5].
The connection between traditional finance (TradFi) and DeFi is becoming more established. Hybrid financial models have emerged, letting institutions leverage DeFi’s features while adhering to established risk management and compliance systems from conventional finance[6]. As a result, new financial products are being created to address institutional needs and to facilitate greater integration between TradFi and DeFi[7].
These patterns are reflected in the growth of the DeFi sector. By mid-2025, the total value locked in DeFi exceeded $118 billion, highlighting the increased interest from institutions and the expanding use of self-custody wallets[8]. As the industry develops, self-custody solutions remain an important tool for institutions seeking secure and compliant access to decentralized markets.
- Anchorage Digital, June 5, 2025, “Porto by Anchorage Digital: Institutional Self-Custody On-Chain Options Through Derive”, http://www.anchorage.com/insights/porto-by-anchorage-digital-institutional-self-custody-on-chain-options-through-derive
- KuCoin, June 2025, “Top Self-Custody Wallets To Store Your Crypto”, https://www.kucoin.com/learn/web3/top-self-custody-wallets-to-store-your-crypto
- Debut Infotech, 2025, “Best DeFi Platforms”, https://www.debutinfotech.com/blog/best-defi-platforms
- Debut Infotech, 2025, “Best DeFi Platforms”, https://www.debutinfotech.com/blog/best-defi-platforms
- Debut Infotech, 2025, “Best DeFi Platforms”, https://www.debutinfotech.com/blog/best-defi-platforms
- Debut Infotech, 2025, “Best DeFi Platforms”, https://www.debutinfotech.com/blog/best-defi-platforms
- Debut Infotech, 2025, “Best DeFi Platforms”, https://www.debutinfotech.com/blog/best-defi-platforms
- KuCoin, June 2025, “Top Self-Custody Wallets To Store Your Crypto”, https://www.kucoin.com/learn/web3/top-self-custody-wallets-to-store-your-crypto