Asia bears the liquidity of encryption, but the US Treasury will open the institutional funds

Opinion: Jack Lu, CEO of Boundit

For years, Crypto promised a more open and efficient financial system. The basic inefficiency remains: the separation between the American capital markets and the liquidity centers in Asia.

The United States dominates the formation of capital, and its recent embrace of the distinctive cabinet and assets in the real world indicates an important step towards a Blockchain -based financing. Meanwhile, Asia was historically a global center for trading and liquidity despite the advanced organizational transformations. However, these two economies work in silos, which limits how capital can move smoothly to digital assets.

This is not just inconvenience – it is a structural weakness that prevents encryption from becoming a class of real institutional assets. Its solution will lead to a new era of organized liquidity, making digital assets more efficient and attractive to institutional investors.

The bottleneck of the capital that holds the encryption

The inadequacy between the American capital markets and Asian encryption centers stems from organizational fragmentation and the lack of financial tools of institutional degree.

American companies hesitate to bring the distinctive cabinet on Onchain due to the development of regulations and compliance burdens. Meanwhile, Asian trading platforms are working in a different organizational model, with less barriers in front of trading but limited capital access in the United States. Without a unified framework, capital flow across the border is still ineffective.

Stablecoins is a bridge of traditional financing and encryption by providing a Blockchain -based alternative. They are not enough. The markets require more than just FIAT equations. To work efficiently, they need the assets carrying positions, reliable in the institutional point of view such as the American Treasury and bonds. Without these, institutional capital is still largely absent from the encryption markets.

Crystation needs a global guarantee standard

Crypto must develop beyond simple symbolic dollars and develop organized organized tools on the return that institutions can trust. Crypto needs a global side standard that connects traditional financing with digital assets. This standard should fulfill three basic criteria.

First, it must provide stability. Institutions will not allocate meaningful capital to the assets category that lacks a strong foundation. Therefore, guarantees should support financial tools in the real world that provide fixed return and safety.

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Second, it must be adopted widely. Just as the USDT of Tether (USDT) and USDC (USDC) have become effective standards for FIAT, the assets that are accepted widely are necessary for institutional liquidity. The market division will continue without standardization, which limits the ability to integrate with the broader financial systems.

Third, it should be Defi-Youic. These assets should be formed and operating via stock exchanges and exchanges, allowing the capital to move freely. Digital assets will remain closed in separate liquidity pools without the integration of Onchain, which prevents the growth of the effective market.

Without this infrastructure, Crypto will continue to work as a fragmented financial system. To ensure that both American and Asian investors can reach symbolic financial tools under the same standard of security and governance, institutions require a smooth and compatible path to the deployment of capital.

The creation of an organized framework that is compatible with encryption liquidity with institutional financial principles will determine whether digital assets can exceed their current borders.

The rise of the corporate encryption liquidity

A new generation of financial products began to solve this problem. The distinctive cabinet, such as Buidl and USC, works as stable assets, generating return, providing investors a copy of traditional fixed income products. These tools provide a substitute for traditional Stablecoins, providing a more efficient capital system that mimics traditional financial markets.

Asian exchanges began to integrate these symbols, providing users with access to returns from US capital markets. However, the most important opportunity to be exposed to encryption along with the assets of the American capital market is lies in filling packaging along with the assets of the distinguished American capital market in a way that meets institutional standards while continuing to reach them in Asia. This will allow a more powerful, compatible and developmental system that connects traditional and digital financing.

Bitcoin also develops beyond its role as a negative store. Bitcoin -backed financial tools allow Bitcoin (BTC) to be a break as guarantee, and cancel liquidity clarification while generating rewards. In order for Bitcoin to work effectively within the institutional markets, however, it must be combined into an organized financial system that is compatible with regulatory standards, which makes it accessible to investors across the regions.

Central central financing (Defi), or “CEDEFI”, is the mixed model that merges central liquidity with the DEFI transparency and its naming, which is another major part of this transition. In order for this to be widely adopted by institutional players, it must provide a unified management of risks, clear organizational compliance and deep integration with traditional financial markets. Ensure that CEDEFI-tools, for example, a distinctive cabinet, BTC or organized lending-will be within the recognized institutional frameworks it is very important to open liquidity on a large scale.

The main transformation is not only about symbolic origins. It comes to creating a system in which digital assets can be effective financial tools recognized by institutions and confidence in them.

Why is this concern now

The next stage of the development of Crypto depends on its ability to attract institutional capital. Industry at a turning point: Unless Crypto is the basis for the non -welded capital between traditional markets and digital assets, it will struggle to obtain long -term institutional accreditation.

The US capital filling with Asian liquidity is not just an opportunity – it is a necessity. The winners of this next stage of the growth of digital assets will be the projects that solve the basic defects in liquidity and side efficiency, which puts the basis for a global financial system and is subject to inter -operating.

Crypto is designed to be without limits. Now, it’s time to make liquidity without limits as well.

Opinion: Jack Lu, CEO of Boundit.

This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.