Maple Finance CEO Predicts Onchain Markets Will Replace Wall Street TradFi

Maple Finance CEO Julian Sawyer has declared that traditional decentralized finance (DeFi) as it exists today is "dead," arguing that onchain markets integrating private credit and stablecoins will eventually supplant traditional Wall Street finance. This claim comes amid growing institutional interest in blockchain-based credit platforms and stablecoin settlements, highlighting a potential shift in how institutional finance operates. However, significant questions remain about the scale, timing, and regulatory environment of such a transition.

What happened

In late 2025, Julian Sawyer, CEO of Maple Finance, publicly stated that the current iteration of DeFi—largely permissionless, retail-focused protocols—is obsolete. Instead, he envisions a future where onchain markets, characterized by permissioned access, private credit instruments, and stablecoin-based settlements, replace traditional Wall Street intermediaries.

Maple Finance itself operates a decentralized lending platform focused on institutional credit markets. It enables institutions to borrow and lend directly onchain through smart contracts, bypassing traditional financial intermediaries. By Q3 2025, Maple Finance reported a total value locked (TVL) of $500 million within its private credit pools, indicating substantial institutional capital allocation to onchain credit markets.

Stablecoins, particularly those with robust collateral backing and regulatory oversight such as Circle’s USDC, have become the preferred medium of exchange within these markets. Their use reduces counterparty and settlement risks compared to traditional fiat systems, potentially enhancing market efficiency for institutional participants.

Supporting this narrative, a 2025 Messari report documented a more than 300% year-over-year increase in institutional participation in DeFi credit markets, with private credit pools on platforms like Maple Finance capturing an increasing share of total onchain lending volumes.

Meanwhile, major traditional financial institutions, including BlackRock and Fidelity, have filed for blockchain-based credit ETFs and expressed interest in stablecoin settlement integration. These regulatory filings signal growing institutional exploration of onchain credit markets, although they do not confirm widespread adoption.

Industry analysts interpret Sawyer’s statement as reflecting a broader maturation of onchain finance—from early-stage, retail-oriented DeFi to institutionally governed, permissioned credit markets. This shift indicates a potential realignment of credit intermediation away from traditional Wall Street players toward blockchain-based platforms.

Why this matters

If onchain markets integrating private credit and stablecoins gain significant traction, the structural landscape of institutional finance could be fundamentally altered. Traditional credit markets rely heavily on intermediaries, complex settlement systems, and legacy infrastructure, which can introduce inefficiencies and counterparty risks.

Onchain credit markets, by enabling direct, programmable lending and borrowing through smart contracts, could reduce reliance on intermediaries, lower transaction costs, and increase transparency. The use of regulated stablecoins as settlement layers may further mitigate settlement risks inherent in fiat systems.

The increasing institutional engagement—evidenced by the rapid growth in private credit pools, ETF filings, and stablecoin adoption—suggests that blockchain-based credit markets are moving beyond experimental phases. This could herald a gradual migration of credit intermediation functions from traditional Wall Street mechanisms to decentralized alternatives, reshaping capital allocation and risk management practices.

Such a transition also has important policy implications. Regulatory frameworks will need to adapt to address the unique risks and operational characteristics of onchain private credit and stablecoin ecosystems. The way regulators approach custody, credit risk, and liquidity requirements will influence the pace and extent of institutional migration.

What remains unclear

Despite these developments, key uncertainties persist that limit definitive conclusions about the replacement of traditional finance by onchain markets.

There is no comprehensive, publicly available dataset comparing the total volume of institutional credit extended onchain versus traditional Wall Street credit markets. Without this, it is unclear to what extent institutional investors have fully shifted their credit activities rather than merely experimenting or allocating marginal capital.
The interpretation that onchain markets will "replace" traditional finance rests largely on company positioning and emerging trends; broad market consensus or empirical validation is lacking.
Regulatory frameworks remain in flux. The degree to which regulations will enable or restrict integration of private credit and stablecoins in institutional finance is uncertain, and regulatory developments have not been fully disclosed or analyzed.
Operational resilience and systemic risk profiles of scaled private credit pools onchain have not been independently audited or stress-tested at scale, raising questions about long-term viability and risk management compared to traditional markets.
It remains ambiguous whether onchain credit markets will fully substitute traditional credit channels or coexist as complementary avenues within a hybrid financial ecosystem.

What to watch next

Further quarterly disclosures from Maple Finance and similar platforms detailing growth in TVL, institutional participation, and credit issuance volumes.
Regulatory developments affecting stablecoin usage, custody solutions, and private credit issuance on blockchain, including guidance from bodies such as the SEC and banking regulators.
Updates on ETF filings and approvals for blockchain-based credit instruments from major issuers like BlackRock and Fidelity, which may indicate institutional adoption trajectories.
Independent audits or stress tests of onchain private credit pools assessing credit risk management, liquidity, and operational resilience at scale.
Emerging empirical data comparing onchain institutional credit volumes with traditional credit markets to assess the extent of migration or coexistence.

While Maple Finance’s CEO asserts that traditional DeFi is "dead" and onchain markets will supplant Wall Street finance, the available evidence points to a complex and evolving landscape. Institutional interest and technological advancements are clear, but the full replacement of traditional credit mechanisms by onchain alternatives remains unproven. The coming years will be critical in determining whether these innovations constitute a structural shift or an additional layer within the broader financial ecosystem.

Source: https://www.coindesk.com/markets/2025/12/21/defi-is-dead-maple-finance-s-ceo-says-onchain-markets-will-swallow-wall-street. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.