Fidelity suggests that an anticipated interest rate cut by the U.S. Federal Reserve in 2024 could spark renewed interest from major institutions in decentralized finance (DeFi) and stablecoins, provided that the infrastructure supporting these digital assets further develops. While Fidelity initially expected institutions to explore DeFi for its yields in 2023, this did not materialize due to Federal Reserve rate hikes, which prompted a shift toward traditional fixed-income products perceived as safer. In the risk-averse climate, institutions found the mid-single-digit returns offered by DeFi to be insufficient relative to the associated risks of smart contracts. Fidelity anticipates a potential resurgence of institutional interest in DeFi yields in 2024 if they become more attractive than traditional finance yields, coupled with advancements in infrastructure.