Opinion: Bouncebit’s CEO Jack Lu
For many years, Crypto has promised a more open and efficient financial system. Basic non -efficiency remains: the connection between the US capital market and the Asian liquidity herb is broken.
The United States dominates capital formation, and recent inclusive token finance and actual assets are important stages for blockchain -based finance. On the other hand, Asia was historically, despite the evolution of regulatory shifts, global encryption trading and liquidity hubs. But these two economies are operated in silo and limit how capital can move smoothly to digital assets.
This is not just an inconvenience, but a structural weakness that prevents the crypto from becoming a true institutional asset class. This solves a new era of new liquidity, and digital assets are more efficient and attractive to institutional investors.
Capital bottle phenomenon with encryption
Non -efficiency between the US capital market and Asian encryption hub comes from the lack of regulatory fragments and institutional grade financial products.
US companies are hesitant to bring the token finance because of the evolving regulations and the burden of compliance. Meanwhile, the Asian trading platform is operated as another regulatory paradigm, and the barrier to transactions is small, but there is a limited access to US -based capital. Without an integrated framework, border capital flow is inefficient.
Stablecoins provides a blockchain -based alternative to Fiat to read traditional finance and encryption. They are not enough. The market needs more than just a fiat. In order to function efficiently, we need assets that are rich and institutionally trusted with yields such as US treasures and bonds. Without these, institutional capital remains in the Crypto market.
Encryption requires universal collateral standards.
Encryption must develop a tool that evolves beyond the simple tokenized dollar and floats a reliable structured yield. Encryption requires global collateral standards that connect traditional finance and digital assets. This standard must meet three key criteria.
First you need to provide stability. The institution will not allocate meaningful capital to an asset class without strong foundation. Therefore, the collateral should be supported by a real financial product that provides consistent returns and security.
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Second, it should be widely adopted. Just as tethers in tethers in USDT (USDT) and USDC (USDC) have become a virtually standard for Fiat-support stable coin, institutional fluidity requires a widely acceptable return-bare asset. Market sculptures continue without standardization and limit the ability to integrate with the extensive financial system of encryption.
Third, the definition must be normal. Such assets must be synthesized and interoperable in the blockchain and exchanges, so capital can move freely. Digital assets will be fixed to a separate liquidity pool without Onchain integration to prevent efficient market growth.
Without this infrastructure, Crypto will continue to operate with a financial financial system. In order to access token financial instruments according to the same security and governance standards, both the US and Asian investors need to have a smooth accompanion path for capital deployment.
If you set a structured framework that adjusts encryption liquidity with institutional financial principles, it determines whether digital assets can truly expand beyond the current limits.
Increased institutional encryption liquidity
The new generation’s financial products have begun to solve this problem. Token tokenized finance, such as Buidll and USYC, functions as a stable value and yield production asset and provides investors with the onChain version of existing fixed income products. This device provides an alternative to traditional stable coins, enabling a more capitalic system that mimics the traditional money market.
The Asian Exchange begins to integrate these tokens so that users can access the US capital market’s yield. But beyond a simple approach, a more important opportunity is to pack the token capital market by satisfying institutional standards with encrypted US capital market assets, which can be approached in Asia. This enables more powerful, observable and expandable systems that connect existing and digital finance.
Bitcoin is also developing beyond its passive value repository. Bitcoin support financial instruments allows Bitcoin (BTC) to be restructured by collateral to unlock liquidity and generate rewards. However, in order for Bitcoin to function effectively in the institution market, it is integrated into a structured financial system that matches the regulatory standards, so that investors of the entire region must access and observe.
The centralized distributed finance (Defi) or “CEDEFI” is a hybrid model that integrates the transparency and comprehensiveness of the centralized liquidity and is another key part of this transition. In order for institutional players to be widely adopted, we need to provide standardized risk management, clear regulatory compliance and in -depth integration with traditional financial markets. It is important to unlock large -scale fluids in the cedefi -based tool (e.g. tokenized treasuries, BTC RESTAKING or Structured Lending).
The main change is not to token the assets. Digital assets create a system that can act as an effective financial product that institutions recognize and trust.
Why is this important
The next step of the evolution of encryption depends on the ability to attract institutional capital. The industry is at the turning point. Encryption will struggle to obtain long -term institutional adoption unless it is established without establishing the foundation of a smooth capital movement between traditional markets and digital assets.
Connecting capital with Asian liquidity is not just an opportunity, but essential. In the next stage of digital asset growth, the winner will be a project to solve the basic defects of liquidity and mortgage efficiency, laying the foundation for a true global interoperable financial system.
Encryption is designed so that there is no boundary. Now it’s time to make liquidity boundary.
Opinion: CEO JACK LU of BounceBit.
This article is for general information purposes and should not be considered 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.