Wall Street snaps up DeFi governance tokens — UNI, MORPHO, JUP rally
Wall Street institutions are shifting from partnerships to direct ownership of DeFi governance and infrastructure, driving double-digit token gains. Apollo Global Management agreed to buy 90 million MORPHO tokens (about 9% of supply) over four years, lifting MORPHO ~17–18% in recent days (trading near $1.76). BlackRock purchased UNI as part of plans to integrate its $2B tokenized Treasury fund (BUIDL) into Uniswap, supporting institutional access to tokenized US Treasuries and boosting UNI ~15% (trading near $3.75). ParaFi invested $35M into Solana-based Jupiter (JUP), settled in JupUSD with lockups and warrants; JUP rose ~9.7% (trading near $0.152). Data points: Morpho TVL $5.8B and market cap ~$999.7M; Uniswap TVL ~$2.994B and market cap ~$2.381B; Jupiter TVL ~$2.012B and market cap ~$539.97M. Other institutional moves noted include Citadel Securities and Ark Invest buying ZRO for LayerZero Labs. Traders should watch institutional flow, token lockups, and DAO governance stakes — factors likely to increase on-chain liquidity concentration and reduce free float, amplifying volatility around these tokens.
Bullish
Institutional purchases of governance tokens and large strategic investments typically reduce circulating supply (through lockups and concentrated holdings) and introduce durable buying pressure. Examples: previous large institutional buys or integrations (e.g., Coinbase listings, Grayscale accumulations) led to sustained price appreciation and tighter spreads. Here, Apollo’s 9% stake in MORPHO, BlackRock’s UNI purchases tied to a $2B tokenized Treasury product, and ParaFi’s $35M into JUP all signal long-term institutional engagement. Short-term, expect heightened volatility as markets price in lockups, governance participation, and potential token unlock schedules. Mid-to-long-term, institutional integration (tokenized Treasuries on Uniswap, protocol governance stakes) can increase on-chain volume, liquidity depth for institutional desks, and perceived legitimacy — supportive of higher valuations. Risks include regulatory scrutiny, centralization concerns, and sell pressure if institutions rebalance; traders should monitor on-chain flows, DAO voting actions, token lockup expiries, and announcements about product integrations to time entries/exits.