COMP Founder: Investors Love DeFi, See Crypto as Shitcoins

• Robert Leshner, Compound’s creator, doubts institutional investors’ interest in cryptocurrencies.
• Leshner believes institutions are more interested in blockchain and DeFi technology.
• Leshner’s new company, Superstate, aims to integrate traditional assets into blockchain.

Robert Leshner, the creator of the Ethereum-linked lending protocol Compound , recently voiced doubts about the participation of institutional investors in the cryptocurrency sector. Leshner shared his perspective during a panel discussion at the Permissionless Conference in the United States.

During the discussion, Leshner expressed skepticism regarding the potential interest of institutions in trading or borrowing cryptocurrencies such as ETH, LINK, and other tokens he referred to as “inferior coins.” However, he emphasized that despite their lack of enthusiasm for cryptocurrencies, these institutions show interest in blockchain technology and the idea of decentralized finance (DeFi). Leshner elaborated on this point, maintaining the original meaning without creative alterations.

They love the idea of DeFi. They love the idea of financial products built in a way that is stronger, more transparent, more efficient, cheaper, better.

He strongly emphasized that they focus on utilizing blockchain technology for trading and lending conventional assets like stocks, bonds, currencies, and commodities. Leshner identified this difference in interests as the “major split” that will influence the future trajectory of DeFi in the coming decade.

Furthermore, Leshner thought that the initial batch of DeFi protocols has acted as a demonstration for institutional investors about the possibilities of tokenized assets. Notably, after stepping down from his role as CEO at Compound Labs in July, Leshner established a new company, Superstate, to integrate traditional assets into the blockchain.

Conversely, some blockchain specialists contested Leshner’s perspective on institutional interest. Shawn Douglass, the co-founder of Amberdata, a blockchain data service provider, opposed the division of assets into “theirs” and “ours” classifications, referencing stablecoins as an example.

Douglass asserted that all DeFi protocols depend on stablecoins for transactional purposes, symbolizing tokenized treasuries. As a result, he argued that there is no necessity to segregate traditional and crypto assets.