Opinion by: Merlin Egalite, co-founder at Morpho Labs

Fintechs in the front, decentralized finance (DeFi) in the back: the DeFi Mullet.

Today’s fintech companies offer excellent user experiences but are constrained by traditional financial infrastructure — siloed, slow, expensive and inflexible. Meanwhile, DeFi provides lightning-fast, cost-effective, interoperable infrastructure but lacks mainstream accessibility.

The solution? Combine fintech’s distribution and user experience with DeFi’s efficient back end.

The mullet is inevitable

Fintech companies heavily rely on traditional financial (TradFi) infrastructure that is siloed, slow to deploy and run, and costly to maintain. This inefficiency limits their control over costs and product offerings and has potential infrastructure risks. Fintechs have a strong incentive to transition to building on autonomous, credibly neutral public infrastructure.

The power of DeFi is evident in stablecoins. While traditional international wire transfers cost $30–$50 and take one to five business days, stablecoin transfers cost mere cents and settle in seconds. This revolutionary improvement in financial infrastructure extends beyond payments. DeFi provides 24/7/365 infrastructure for trading, lending and borrowing with instant settlement, open access and deep liquidity, enabling better price execution and yields.

Plugging their compliance-ready front end into DeFi infrastructure, fintech companies can focus on creating exceptional user experiences. This opens up tremendous opportunities for innovation while driving more liquidity onchain, creating a positive feedback loop of embracing the DeFi Mullet.

Now is the time for mainstream adoption

Today’s DeFi ecosystem has proven its reliability for fintech integration. There are dozens of protocols that demonstrate this maturity, securely managing billions in loans through immutable, governance-minimized designs. DeFi infrastructure gives fintechs complete control over their infrastructure. This is particularly crucial after the recent Synapse bankruptcy that trapped Yotta user funds meant to be insured by the Federal Deposit Insurance Corporation.

Recent: Bitcoin DeFi will have 300M users, beating Ethereum and Solana: Exec

Institutions are also coming onchain. BlackRock has tokenized a fund via Securitize; Stripe has acquired Bridge for $1 billion to scale its stablecoin solutions; the US is creating a strategic Bitcoin (BTC) reserve; and clarity on regulation is opening the floodgates. The shift is step-by-step but tangible.

DeFi has arrived.

The next phase

For years to come, expect more products like crypto-backed loans to be released by fintech’s most advanced players, offering onchain saving accounts, onchain loans, instant international payments and more. 

This transformation will be invisible to users and powered by smart wallets and account abstraction that maintain the familiar Web2-like user experience at which fintech companies excel. Early adopters will gain significant advantages over competitors.

Yet, unlike building on traditional finance, DeFi’s open infrastructure means even latecomers can benefit from existing network effects without starting from zero.

Some skeptics argue that the involvement of fintechs and traditional institutions will erode decentralization, as protocols must comply with regulatory requirements. While this concern is understandable, the opposite is more likely.

Expecting protocols to achieve compliance across every jurisdiction worldwide is unrealistic, especially given the vast regulatory fragmentation. Instead, regulating the apps that interface with users makes far more sense rather than the underlying protocols. For this regulatory model to work, however, protocols must remain credibly neutral.

A credibly neutral mechanism adheres to four principles:

It embeds no preference for specific individuals or outcomes.

It is open-source with publicly verifiable execution.

It is simple and understandable.

It changes infrequently.

Examples like HTTP and SMTP demonstrate the power of credibly neutral protocols — they are free, open and unregulated, with only the clients subject to oversight. The same logic should apply to governance-minimized, immutable DeFi protocols.

These constraints will push DeFi builders toward creating genuinely decentralized and trustless systems.

Fintechs integrating DeFi protocols can build on top of the most neutral infrastructure and access their growing network effects.

Let the mullet grow

The DeFi mullet is more than just a meme — it’s a structural shift.

To scale, DeFi must meet users where they are: through regulated, user-friendly fintech channels. For fintechs to stay relevant, they must offer their customers the best user experience and opportunities, such as the best rates. Those who miss this opportunity risk falling into irrelevance, much like traditional retail banks losing market share to today’s fintechs.

This convergence isn’t just possible — it’s inevitable.

Opinion by: Merlin Egalite, co-founder at Morpho Labs.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

South Africa’s Garden Route, famed for its lush forests, expansive beaches and charming towns, has become a testbed for Bitcoin adoption.

From Mossel Bay to Witsand and Plettenberg Bay to Knysna, Bitcoin has become popular among shop owners and travelers alike for a multitude of reasons.

“We’re seeing the early signs of a parallel, permissionless economy emerging across an entire region,” James Caw, founder of SimplB — a local crypto asset provider — told Cointelegraph, “where small businesses benefit from faster, lower-cost digital payments and where people have more options to earn, send and receive sound money securely.”

For tourists, the benefits are immediate: no currency exchange hassles, no international card fees, and the ability to pay instantly and securely. For locals, Bitcoin (BTC) offers a hedge against inflation, protection from currency volatility and new economic opportunities.

Here’s a taste of what a Bitcoin-friendly trip along the Garden Route is like.

The Garden Route is where Bitcoin meets paradise

The Garden Route is one of South Africa’s premier tourist corridors. It stretches roughly 300 kilometers from Mossel Bay in the west to the Storms River Mouth in the east, attracting hundreds of thousands of tourists yearly.

Crypto adoption is escalating thanks to South Africa’s regulatory environment, which now recognizes Bitcoin as a financial product. Across the Garden Route, you can spend pre-acquired Bitcoin freely, with little concern for local tax or exchange controls.

It’s a grassroots movement. Towns like Witsand and Plettenberg Bay are at the forefront, and national retailers like Pick n Pay provide a safety net for crypto spending along the way. Every Pick n Pay store, including supermarkets, clothing outlets and Express convenience stores, accepts Bitcoin via the CryptoQR app. This guarantees you can always buy daily goods with Bitcoin wherever you travel. 

Related: Stablecoin fever: 5 major stablecoins are growing crypto adoption

Witsand is the Bitcoin village

Located at the mouth of the Breede River, Witsand is a sleepy coastal town with a big reputation in the Bitcoin world. Here, Bitcoin isn’t just accepted — it’s preferred.

It’s thanks to the efforts of local champions like Edwin Jones, a software engineer and passionate supporter of Bitcoin adoption in the Garden Route. Witsand has become a functioning Bitcoin circular economy. Accommodation options like Fantasea and Happy Days holiday homes, meals at Ellie’s on Main, groceries at local shops, gym memberships, boat services, petrol, surf lessons and mini-golf can be paid for using Bitcoin.

As Jones notes: 

Bitcoin Witsand existed long before we gave it a name. It was just having conversations with friends, and as the local businesses started understanding Bitcoin, they actually demanded we start getting the technology in place.

The town’s small and close-knit community has enabled rapid adoption; more than 45 establishments accept Bitcoin as of early 2025. The town’s enthusiasm is infectious, as locals and visitors enjoy the ease and security of digital payments.

Witsand proudly announces its acceptance of Bitcoin. Source: Edwin Jones

Witsand’s success as a Bitcoin hub is rooted in its community-driven approach. Jones outlines its growth by outlining that: 

Although there have been many individual businesses over the years since 2009 that started and stopped accepting Bitcoin for the Garden Route, the adoption really started kicking off in 2021.

“With the Lightning Network starting to reach maturity around that time, the first Spaza Shop in Mossel Bay, Bitcoin Ekasi, started accepting Bitcoin in August 2021, and the first restaurant in Witsand in December of the same year.”

Education has been central to the process. Local advocates have focused on teaching business owners the fundamentals of Bitcoin, warning against scams and emphasizing the difference between Bitcoin and speculative altcoins. 

“With all the circular economies advocating against gambling and trading, cautioning against interest and investments, being explicitly Bitcoin, and focusing on the fundamentals rather than the price, scammers have been kept at bay,” Jones said. “We have also found that businesses don’t have to adapt as much as evolve.”

Bitcoin doesn’t change a business — it just supercharges it. Doing the same old things, much better.

Mossel Bay’s surf and social upliftment

Mossel Bay, the historical gateway to the Garden Route, is not just about beaches and maritime history. Mossel Bay is home to Bitcoin Ekasi, a pioneering project that brought Bitcoin to the township of JCC Camp.

Bitcoin Ekasi empowers unbanked residents by enabling them to earn and spend Bitcoin locally. Coaches at The Surfer Kids nonprofit are paid in Bitcoin, and local spaza shops accept Bitcoin for daily necessities.

For the Bitcoiner tourist, Mossel Bay offers a unique opportunity for “conscious crypto-tourism.” You can take surf lessons from instructors paid in Bitcoin, visit the Bitcoin Ekasi education center, or support the project with direct donations.

The town also boasts a Pick n Pay that accepts Bitcoin. As SimplB’s Caw observes: 

The Bitcoin Ekasi project first started when they began accepting Bitcoin because of the demand from foreign tourists visiting Mossel Bay. It is just so simple to function on a Bitcoin standard once you begin using it.

Plettenberg Bay is the fastest-growing Bitcoin economy

Further east, Plettenberg Bay has witnessed an explosion in Bitcoin adoption. In just a few months, the number of Bitcoin-accepting merchants jumped from five to more than 75, making it one of Africa’s most dynamic crypto economies.

Confirmed acceptors include Ferris Cars (which facilitates rental accommodation payments in crypto), Glow Lighting Design and all local Pick n Pay branches. Adventure tourism companies, boutique retailers and professional services are increasingly receptive to Bitcoin, especially if you ask. The rapid growth suggests an enthusiastic local scene, with businesses eager to tap into the spending power of Bitcoin tourists.

Related: 8 major crypto firms announce US expansion this year

Plettenberg Bay offers a vibrant mix of beach life, nature and crypto-friendly commerce. The town’s energy is palpable, and visitors are encouraged to engage with merchants, share information about Lightning payments, and help grow the ecosystem.

“Right now Plettenberg Bay is by far the most interesting circular economy in Africa and possibly the world,” said Jones. “It currently boasts having the most businesses accepting Bitcoin of any town in Africa and has achieved this in less than three months.”

Bitcoin preferred signs can be found along the Garden Route. Source: Edwin Jones

Sedgefield is a quiet pioneer

Sedgefield, a tranquil town between Knysna and Wilderness, played a key role in the national rollout of Bitcoin payments at Pick n Pay. It was one of the trial sites for the innovative QR code converter from MoneyBadger, which enables Bitcoin spending at every Pick n Pay in South Africa.

Sedgefield itself doesn’t have the same density of Bitcoin-accepting independent merchants as Witsand or Plettenberg Bay, but the presence of Pick n Pay ensures that crypto tourists can always pay for groceries and essentials with sats.

Practical information for your trip

If you do make it out to the Garden Route, recommended wallets include Blink, Wallet of Satoshi and Phoenix — all Lightning-enabled and widely used in the region. 

In larger towns like Knysna, George, Wilderness and Oudtshoorn, the Bitcoin scene is still emerging. There aren’t yet established circular economies, but the nationwide acceptance of Bitcoin at Pick n Pay provides a reliable foundation for spending.

The Spasie on Breede Restaurant and Bar is just one of many establishments accepting Bitcoin. Source: Edwin Jones

BTC Map occasionally lists independent merchants, like Beans About Coffee in Oudtshoorn. Still, the best strategy is to ask around, look for Bitcoin signage, and use mapping tools to discover new acceptors.

For accommodation, activities and dining, direct inquiry remains key. Many guesthouses and tour operators are open to Bitcoin payments, especially as awareness grows. Online platforms like Bitrefill enable you to buy gift vouchers for major retailers using Bitcoin, providing a workaround for places that don’t yet accept crypto directly.

Happy travels.

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Bitcoin’s next explosive move could send the asset to $250,000 by the end of 2025, according to Scott Melker, a crypto analyst and host of The Wolf of All Streets podcast.

Speaking in a recent interview, Melker cited growing institutional interest and diminishing volatility as key factors that could drive the next leg up.

“250K this year, totally possible,” Melker said, adding that Bitcoin (BTC)’s volatility has declined significantly in recent years.

“It used to be about three times as volatile as the S&P. Now it’s less than two times.” He pointed to increased involvement from pension funds and ETF issuers as evidence of a more mature, stable market.

The shift, he argued, reflects a broader trend of institutional adoption. “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be,” Melker explained.

Related: New Bitcoin price all-time highs could occur in May

Crypto markets show signs of strength in 2025

Market activity in 2025 has already shown signs of strength. Bitcoin surged past $104,000, while Ether (ETH) reclaimed levels above $2,600.

Coinbase’s addition to the S&P 500 marked a major milestone for crypto’s integration into mainstream finance. Melker noted the company is not just entering the index but doing so in the top 50 by market cap — a reflection of how deeply rooted some crypto firms have become.

In addition to Coinbase, firms like Galaxy Digital and eToro have moved forward with public listings, signaling confidence in regulatory conditions under the current US administration.

Melker said that this environment, bolstered by dropped SEC lawsuits and favorable executive orders, has created what he calls “an extremely bullish” backdrop for the sector.

While Bitcoin remains the primary focus, Melker acknowledged a renewed interest in altcoins. Recent price action saw Ethereum outpace Bitcoin, triggering a rally across smaller-cap tokens — a sign, he said, that “new money” is entering the space rather than just rotating within it.

Related: Here is why Bitcoin price is stuck below $105K

Don’t rule out a wild run

Despite the optimism, Melker tempered expectations, noting that most experts are forecasting cycle highs between $120,000 and $150,000. Still, he emphasized that wild surges are not out of the ordinary in crypto.

“From the 2020 lows to the last bull market, Bitcoin went from $3,000 to $69,000. A 2.5x from here wouldn’t be a big deal.”

On May 16, X analytics account Apsk32 argued that Bitcoin has a “decent chance” of hitting $250,000 or more in 2025 as attention turns to gold copycat moves.

Source: Apsk32

On April 28, Peter Chung, head of research at quantitative trading firm Presto, also repeated his prediction that Bitcoin will reach $210,000 by the end of 2025.

On April 22, analysts from Standard Chartered and Intellectia AI said institutional Bitcoin demand from exchange-traded funds and traders seeking to hedge against macroeconomic risk could cause Bitcoin’s price to more than double this year.

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