1inch’s Sergej Kunz: institutions should build on DeFi, not duplicate it

Traditional financial institutions are eager to move into DeFi. But many are making a mistake: they are spending millions to rebuild systems that already work on-chain.

What’s wrong with the way institutions often approach DeFi? They fail to leverage the existing and already mature DeFi infrastructure, Sergej Kunz, 1inch co-founder, said in an interview with crypto news magazine Sandmark during EthCC 2026 in Cannes earlier this month. 1inch routes trades across more than 400 decentralized exchanges on 13 networks, with over $800 bln in cumulative swap volume - making the case for existing infrastructure a concrete one.

DeFi adoption: a fragmented approach

According to Sergej, traditional financial institutions could better use the infrastructure that is already available and effective.

"They are working in silos, trying to build what already exists without really discovering who has already done it," he said. "I would encourage them to partner rather than reinvent the wheel because it is already working very well and is highly efficient."

His view reflects a broader trend in DeFi: leading protocols are increasingly positioning themselves not as rivals to traditional finance, but as ready-made infrastructure it can build on. In 1inch’s case, that means intent-based swaps, bridgeless cross-chain execution and MEV-protected routing - capabilities already integrated by Coinbase and Ledger.

AI’s role: integration over execution

Another area where hype may outpace real-world utility - at least for now - is artificial intelligence.

Sergej noted that AI can already deliver value by improving developer workflows and making integrations easier. However, he does not see it as essential for core trading execution, which is already highly optimized.

Meanwhile, Sergej drew a harder line on autonomous agents making financial decisions.

"This reflects the decentralized finance culture,” he explained. “You are responsible for your actions. I don’t want to be responsible for your actions. That’s why I’m not sure we will introduce something that decides for users. People need to understand and decide for themselves."

Balancing automation and responsibility

The tension extends beyond AI to a deeper issue within DeFi. On the one hand, the industry is moving toward more automation and a smoother user experience. On the other, it is built on the principle that users remain fully responsible for their decisions.

Sergej’s message to institutions is clear: the rails are laid, the liquidity is deep, and the technology is production-grade. The opportunity isn’t in rebuilding - it’s in building on.

Check out 1inch’s efficient and secure swaps!