As global markets reel from rising tariffs and fractured trade relations, Chainlink Labs CEO Sergey Nazarov sees an unexpected silver lining for decentralized finance (DeFi). As per Nazarov, the current economic turbulence may actually accelerate blockchain adoption and strengthen the role of DeFi in a shifting global financial system.
Nazarov spoke with an American banker on Wednesday, where he weighed in on the implications of U.S. tariffs, particularly those announced by President Donald Trump, for crypto markets and decentralized infrastructure.
However, Trump temporarily reprieved most of his reciprocal tariffs for 90 days, excluding China. The substantial 125% tax on Chinese goods and a 10% baseline tariff on all imports are two of the latest measures that have increased investor concern about market volatility.
“I think our industry is actually going to become even more important in a time of deglobalization because it’s an industry that is not being deglobalized,” Nazarov said.
According to Nazarov, the impact of tariffs and inflation on the traditional market highlighted the fragility of centralized finance structures. Retail investors are losing capital to rising costs, and institutions are under pressure. But blockchain offers an alternative- a system where capital can move freely, across borders, and without relying on fragile trade agreements.
He added that while crypto remains correlated to tech-heavy indices like the Nasdaq, the long-term fundamentals are shifting. “I think the flow of Chinese capital into our industry has always been good,” said Nazarov. “The first really big jump when people started to take bitcoin seriously was when it went to $1,000 and that was driven by money coming out of China. Historically, there’s been a lot of movement in the market based on Chinese capital.”
Institutional interest in blockchain seems to be increasing despite market turbulence. Nazarov emphasized that Chainlink’s infrastructure is crucial to the launch of tokenization assets by big players like UBS, SBI, Fidelity, and even Blackrock. “You actually don’t need 100% of all institutions to be involved. What you need is some percentage of them doing it at the same time; that starts to create an institutional blockchain transaction ecosystem.”
It seems that tariffs are more of a catalyst than a deterrent. Nazarov pointed out that banks are still working on blockchain projects despite the economic downturn, indicating a more profound change in priorities. He further added that the need for cross-border payments and global asset mobility is growing, not shrinking. And blockchain is the infrastructure that can support that.
As geopolitical tensions rise and traditional financial systems fragment , Nazarov believes DeFi could become a parallel global system – one that’s not only resistant to tariffs but potentially more efficient than the existing one.
The U.S. now realizes it must lead in crypto, he concluded. Stablecoins are becoming tools of dollar distribution. The real question is: where will the future financial infrastructure be built—in the U.S. or elsewhere?
Recently, Chainlink founder Sergey Nazarov also attended the White House Crypto Summit on 7th March, along with several other crypto giants. The summit hosted by Donald Trump was an inflection point for the blockchain.
Also read : Chainlink Founder to host talk with Bo Hines on 100 days of Trump
