Mike Cagney: $6 trillion asset driven financial blockchain faces challenges in experience, custody, and authority

Mike Cagney stated that DeFi is suitable for asset driven finance (ABF), as it can avoid duplicate staking, improve collateral, enable self custody, and provide liquidity collateral. The figure has brought ABF onto the chain, but the approximately $6 trillion market has not yet undergone large-scale migration. Mike Cagney lists the reasons why traditional finance has not entered the blockchain: poor interface experience; It is difficult to have both qualified custody and recoverable self custody; Hedge funds require multiple wallets, multiple users, tiered permissions, and complete auditing; Regulatory measures are being streamlined, and the precedent for on chain native securities has become clearer; KYC can be resolved through programmatic screening and wallet level permissions.