CoinDesk Podcast Network Fed Rate Cuts Will Trigger The Next DeFi Summer
Sep 29, 2025
Sanat Rao discusses the impact of recent Fed rate cuts on DeFi, highlighting how they enhance yields and attract investors. He explores the growing intersection of traditional finance and on-chain markets, predicting a future where institutions tokenize real-world assets. The conversation turns to the potential for a new DeFi summer, comparing today's environment to that of 2020. Rao also addresses current investment risks, noting the shift from hacks to stablecoin de-pegging, and emphasizes improved monitoring tools in the DeFi landscape.
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Meeting On A Plane Led To A Panel Seat
- Sanat Rao and Jennifer met on a 15-hour flight to Korea and connected in person at the conference.
- They note the value of in-person conferences for making industry contacts that messages alone might not achieve.
Fed Cuts Amplify DeFi Yield Appeal
- Fed rate cuts lower public risk-free rates and make DeFi yields comparatively more attractive.
- Rate cuts also spur risk-on behavior that increases capital inflows and drives DeFi yields higher.
TradFi And DeFi Convergence
- Traditional finance is beginning to enter crypto via tokenized real-world assets and custody/on-chain services.
- Sanat Rao expects increasing convergence between TradFi and DeFi over the next few years.