In early February 2026, several major traditional finance (TradFi) institutions made headlines by acquiring DeFi governance tokens — a move that was rare until recently.
These purchases mark a departure from earlier patterns where large firms limited crypto exposure to equity stakes, venture rounds, or pilot programs.
Most investors and analysts agree: these moves are not broad portfolio allocations into DeFi tokens as a new asset class.
“Each firm bought tokens in the specific protocol they intend to use as infrastructure. This is vendor alignment, not portfolio allocation.” — Jake Brukhman, CoinFund
TradFi institutions are increasingly tokenizing their own products (e.g., Treasuries, funds, credit) and distributing them onchain. To do that effectively, they need reliable DeFi venues — and holding governance tokens creates alignment, brand halo, and sometimes better access or influence.
“They are selling to us, not buying from us. TradFi firms are the factory and crypto is the store.” — Lex Sokolin, Generative Ventures
Nothing fundamental about DeFi protocols changed overnight. What improved significantly is the operational and regulatory environment:
These developments lowered the compliance and operational friction that previously made direct token ownership difficult for regulated institutions.
Opinions vary:
Most investors say governance tokens do not yet function like strategic equity:
For tokens to behave more like equity, we need:
Many expect novel token designs that look more like onchain equity once market structure legislation passes.
Despite the news, DeFi token prices barely budged.
Reasons:
DeFi tokens have historically underperformed protocol revenue/TVL due to:
Concentration of power is a legitimate concern:
Biggest risk: Regulatory reversal
Most expect more TradFi firms to buy selectively, focusing on blue-chip protocols tied to their product strategy.
Frequently mentioned names:
Most moves will likely remain tied to strategic relationships rather than pure speculation — at least until clearer value accrual and regulatory treatment emerge.
TradFi’s direct purchases of DeFi governance tokens are real — but they are primarily strategic infrastructure plays, not broad bets on DeFi tokens as an asset class. Improved custody, regulatory tailwinds, and maturing infrastructure have lowered the barriers enough for deliberate, selective exposure. The long-term direction points toward more institutional participation, clearer value accrual mechanisms, and potentially novel token designs resembling onchain equity — but we’re still early in that transition.
