Traditional finance (TradFi) keeps its distance from decentralized finance (DeFi) over risk concerns, but collaboration is possible. Globally, the financial systems are watching DeFi unfold with intrigue. Though DeFi offers innovation and decentralized options, its risks—regulatory hurdles, security vulnerabilities, and volatility—remain an obstacle for TradFi institutions. Until DeFi manages these risks, TradFi will remain cautious. The potential synergy, however, could reshape financial landscapes, bringing traditional and decentralized benefits together.
