KYB for DeFi protocols grappling with institutional adoption

Been thinking a lot about the push for institutional capital into DeFi, and specifically, the challenges around Know Your Business (KYB) requirements for protocols. Retail is one thing, but when we talk about big funds and corporates, the bar for compliance clarity around who exactly is interacting with the protocol and how they're governed gets much higher. Are we seeing any innovative solutions emerging for on-chain KYB that satisfy traditional finance standards, or is this still a major bottleneck holding back serious institutional inflows? It feels like a missing piece that's more complex than just linking an address to an individual.