"In the near term — traditional institutions using onchain protocols as backend while maintaining familiar customer interfaces — is the expansion path already underway. Morpho V2's market-discovered rate pricing and Aave's Horizon compliance layer provide the two missing pieces that institutional adoption has historically required: pricing mechanisms resembling traditional credit markets, and counterparty controls satisfying regulatory frameworks. Over a longer horizon, as tokenized real-world assets grow beyond their current footprint and the collateral thesis finds expression through programmable, continuously auditable structures, the distinction between traditional and digital ABF begins to dissolve. Not because one replaces the other, but because the underlying credit logic is identical — and the most efficient rails will carry the volume. A $2.7 trillion financing gap will not be filled by traditional channels alone. Onchain lending built over the past four years was designed for this specific moment. Yet the overlap of massive demand and maturing supply is observable in the data, the integrations, and the independent conclusions of the firms closest to these markets."

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