- Chainlink’s Sergey Nazarov said DeFi formed the foundation, creating wallets, liquidity, and protocols for on-chain finance.
- Nazarov said TradFi tokenization brings new users and capital on-chain, enabled by clearer regulation and institutions.
- He said a global on-chain system needs interoperable data, identity, and compliance across hundreds of chains and systems.
Chainlink outlined a three-stage path toward a global financial system. The framework, shared by co-founder Sergey Nazarov, described DeFi, TradFi tokenization, and a broader on-chain system. The comments were made during a public discussion in 2025, focusing on industry structure, regulation, and infrastructure.
DeFi as the Foundation Stage
According to Chainlink, the first stage of the new system centers on decentralized finance growth. Nazarov said DeFi already expanded rapidly and continues scaling toward trillions in value. Notably, he described DeFi as the original on-chain use case that established wallets, liquidity, and protocols.
However, he stressed that DeFi alone does not define the full system. Instead, it created the technical and user base required for broader adoption. This foundation now supports additional financial activity moving on-chain. That transition leads directly into the next stage. Nazarov said the industry has already entered it.
Tradfi Tokenization Brings New Users
The second stage focuses on tokenizing traditional financial assets. According to Nazarov, this phase brings net new capital and new users. He said banks, brokers, and fintech platforms are moving users on-chain as wallets and addresses.
Notably, he linked this shift to regulatory developments in 2025. He cited new legislation, clearer guidance, and newly appointed regulators in Washington, D.C. These steps, he said, enabled institutional participation without changing the underlying on-chain model.
As a result, traditional systems now connect directly with decentralized networks. This integration increases activity across multiple blockchains and financial platforms.
Infrastructure Needs of a Global System
The final stage describes a fully on-chain global financial system. Nazarov said this system requires reliable data, connectivity, identity, compliance, and orchestration. According to him, hundreds of chains and legacy systems must interoperate securely.
He compared the evolution to the internet’s growth beyond email. Over time, multiple use cases defined the internet’s value. Similarly, he said tokenized assets and digital finance could surpass cryptocurrencies alone.
Chainlink, he added, works across both DeFi and TradFi tokenization. Its role includes data provision and system coordination. He said this structure supports security and reliability as new chains emerge daily.
