Fees, collateral give DeFi edge as TradFi eyes crypto loans: 1inch exec
1inch co-founder Sergej Kunz told Cointelegraph that DeFi’s user experience, wider collateral range and optimized fees give it an edge over TradFi in the lending race.
As traditional finance (TradFi) eyes the crypto lending market, community members explained how decentralized finance (DeFi) lending protocols can compete with what mainstream financial institutions bring to the table.
On Tuesday, JPMorgan Chase, the largest bank in the United States, was reported to be exploring lending directly against crypto assets like Bitcoin (BTC) and Ether (ETH), according to the Financial Times. An unidentified source said the bank may launch the offering as soon as 2026, though the plan is still in its early stages.
With a major TradFi player eyeing the crypto lending market, the pressure on DeFi lenders to remain competitive is increasing. However, 1inch co-founder Sergej Kunz told Cointelegraph that crypto lending in DeFi has undeniable advantages over traditional finance institutions.