A closer look at “DeFi vs. Traditional Finance: How Penn State Research Reveals Hidden Ties Between Crypto a”, exactly as the source publishes it. Sarah Chen, a finance researcher at Pennsylvania State University, challenges the long-held belief that decentralized fina... Traditional Finance: How Penn State Research Reveals Hidden Ties Between Crypto and Wall Street Sarah Chen, a finance researcher at Pennsylvania State University, challenges the long-held belief that decentralized finance (DeFi) operates independently of traditional financial systems.
Her study reveals that despite DeFi’s promise of autonomy through blockchain technology, digital asset markets remain deeply intertwined with legacy institutions—particularly through liquidity providers, stablecoin backing, and investor behavior patterns. Key data shows that over 68% of major DeFi platforms rely on assets pegged to U.S. dollars, often issued by centralized firms like Circle and Coinbase, which in turn maintain reserves in traditional banking networks. For the complete material, the listing points back to the source inside the network.