These products require integration with activities reserved for traditional financial institutions, such as fiat on- and off-ramps, trust accounts, secured loans, retirement vehicles and access to certain payment systems, among others. To integrate, crypto companies must either engage with those institutions (e.g., banks, institutional investors, investment advisors, rating agencies, etc.) or subject themselves to direct regulation.
Source: https://www.coindesk.com/layer2/2022/03/09/how-crypto-companies-must-mesh-with-traditional-financial-services-platforms-for-defi-to-succeed/?utm_medium=referral&utm_source=rss&utm_campaign=headlines