Catalysis Announces Pivot to Institutional DeFi Coverage
Singapore, Singapore, September 17th, 2025, Chainwire
Catalysis, a leading blockchain infrastructure project, today announced a strategic pivot to focus exclusively on institutional-scale decentralized finance (DeFi) coverage solutions. The company’s new protocol leverages restaked capital from protocols including Eigenlayer, Symbiotic and Satlayer to provide over $20 billion in protection capacity – representing a 100x increase over existing coverage protocols.
The strategic shift addresses a critical market gap preventing institutional adoption of DeFi protocols. Despite increasing regulatory clarity around digital assets, only 0.5% of DeFi Total Value Locked (TVL) is currently insured, with most existing coverage protocols limited to providing just a few million dollars in protection. This infrastructure limitation has left institutional investors with billions in capital waiting for robust deterministic loss limits in order to deploy onchain.
“Institutions are finally ready to move onchain at scale, but today’s coverage infrastructure simply isn’t built for their requirements,” said Abhishek Kumar, CEO and Co-Founder of Catalysis. “While regulatory clarity has removed many barriers, institutions need coverage in the hundreds of millions or billions – not the few million that current protocols can provide. Catalysis bridges this gap by creating purpose-built institutional coverage infrastructure.”
Revolutionary Approach to DeFi Risk Coverage
Catalysis’s new platform represents the first fully onchain risk coverage protocol designed specifically for institutional requirements. The system operates through a novel architecture where idle restaked ETH, BTC, and SOL are delegated to specialized CoverPools managed by professional curators. Institutions can then apply for coverage, pay fees through smart contracts, and receive automated payout disbursements.
Key features of the new platform include:
- Massive Scale: $20B+ protection capacity through restaked capital integration
- Full Onchain Operation: Programmable protection with transparent, dynamic pricing
- Automated Processing: Smart contract-based fee payments and payout disbursement
- Institutional Compliance: Purpose-built for regulatory requirements and legal enforceability
- Multi-Asset Support: Coverage across Ethereum, Bitcoin, and Solana ecosystems
Unlocking Institutional DeFi Use Cases
The enhanced coverage capacity is designed to support large-scale institutional applications across multiple DeFi verticals:
Lending Markets: Institutional-grade protection for large-scale lending and borrowing protocols, enabling traditional financial institutions to participate with confidence.
Stablecoin Infrastructure: Comprehensive coverage for stablecoin issuers and protocols, supporting the next generation of digital currency adoption.
Structured Yield Products: Risk mitigation for sophisticated yield strategies and structured products targeting institutional investors.
“Institutional DeFi has long required precisely this caliber of infrastructure solution to unlock scale,” said Tak Lee, General Partner at Hashed Emergent. “Catalysis has identified the key bottleneck preventing institutional capital from flowing into DeFi at scale, and their restaked capital approach provides a genuinely novel solution. We believe this pivot positions them to capture significant market share as institutions accelerate their onchain adoption.”
Availability and Next Steps
Catalysis is currently engaging with institutional borrowers, restaking protocols, Liquid Restaking Tokens (LRTs), and DeFi protocols interested in accessing institutional-scale coverage solutions. Organizations interested in partnership opportunities or coverage applications can contact the company’s institutional sales team.
Product timelines, technical specifications, and additional partnership details will be announced in the coming weeks.
About Catalysis
Catalysis is building the infrastructure to bring institutional capital onchain at scale through purpose-built coverage solutions. By leveraging restaked capital from leading protocols, Catalysis provides the first institutional-grade, fully onchain risk coverage platform capable of supporting billions in protection capacity. The company is backed by industry-leading investors and maintains a focus on compliance and institutional requirements.
For more information about Catalysis, users can visit https://catalysis.network/