KYC Friction vs. Regulatory Mandates in DeFi Onboarding

Curious how firms are reconciling the demand for frictionless user onboarding in the DeFi space with increasingly stringent KYC/AML requirements. Specifically, where are the biggest pain points for KYB when onboarding institutional clients looking to leverage DeFi protocols? It feels like the gap between traditional finance compliance expectations and the native DeFi ethos is widening, and I'm interested in practical solutions folks are implementing, not just conceptual ones. Are there any emerging tech solutions genuinely bridging this, or is it still a manual grind for most?