KYC/AML hurdles for on-ramping institutional DeFi capital

I'm still trying to get my head around how the current KYC/AML landscape, particularly with its jurisdictional complexities, is going to realistically impact the on-ramping of significant institutional capital into DeFi. We talk a lot about the yield opportunities, but the practicalities of a large fund needing to satisfy their compliance teams while interacting with a pseudonymous, global protocol seems like a massive bottleneck. Are we expecting new, dedicated intermediary services, or will the protocols themselves have to integrate more robust (and centralized) identity layers to gain broader adoption? It feels like the current fragmented approach to jurisdiction-specific regulations will continue to be a major drag.