Opinion: Jack Lu, General Director of BONCIT
For years, Crypto has promised a more open and capable financial system. Basic inefficiency remains: disconnection between US capital markets and Asia liquidity centers.
The United States dominates in the creation of capital, and its recently covered the tokenized treasures and assets in the real world signals a significant step towards finances based on blockchain. Meanwhile, Asia was historically a global cryptographic trade center and liquidity, despite evolving regulatory changes. However, these two economies operate in silos, limiting how capital can smoothly move into digital assets.
This is not just an inconvenience – it is a structural weakness that prevents crypto by becoming a real class of institutional assets. Solving it will cause a modern era of structural liquidity, thanks to which digital assets are more capable and attractive for institutional investors.
The capital’s bottleneck stops the crypto
The inefficiency between capital markets in the USA and the Asian Cryptocurrency Piasts results from regulatory fragmentation and the lack of institutional financial instruments.
American companies fluctuate before bringing tokenized treasures due to developing regulations and compliance loads. Meanwhile, Asian trade platforms operate in another regulatory paradigm, with fewer trade barriers, but circumscribed access to US capital. Without unified frames, the cross -border flow of capital remains incapable.
Stablecouins combines established finances and crypto, providing an alternative based on blockchain for Fiat. Not enough. Markets require more than just Fiat equivalents. To function effectively, they need a crop containing, institutionally trusted assets, such as USA Treasurys and bonds. Without them, institutional capital remains largely absent from cryptographic markets.
Crypto needs a universal security standard
Crypto must evolve outside of uncomplicated tokenized dollars and develop structured instruments for performance production that institutions can trust. Crypto needs a global security standard that combines established finances with digital resources. This standard must meet three basic criteria.
First, it must offer stability. The institutions will not allocate significant capital to the asset class, which lack a solid foundation. Therefore, security must be supported by real financial instruments that provide consistent performance and security.
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Secondly, it should be commonly accepted. Just like Tether’s USDT (USDT) and USDC (USDC), de facto standards for Stablecoin have become the FIAT, commonly accepted assets with performance consumption are necessary for institutional liquidity. Market fragmentation will persist without standardization, limiting cryptocurrency ability to integrate with wider financial systems.
Third, there must be defaile. These assets must be composite and interoperable in blocks and exchanges, enabling free movement of capital. Digital assets will remain enclosed in separate liquidity pools without Onchain integration, preventing effective market growth.
Without this infrastructure, crypto will act as a fragmentary financial system. To ensure that both American and Asian investors can access toketenized financial instruments in accordance with the same standard of security and management, institutions require a liquid, compatible path to the implementation of capital.
The establishment of structured frames that adapt cryptographic liquidity with institutional financial principles will determine whether digital assets can really exceed their current restrictions.
Increased fluidity of the institutional cryptographic class
The modern generation of financial products begins to solve this problem. Treasuries tokenized, such as Buidl and Pokiec, act as a stable value, generating crops, offering investors a version of established fixed products. These instruments are an alternative to established Stablecoin, enabling a more capital system that imitates established cash markets.
Asian stock exchanges begin to turn on these tokens, providing users with access to crops from American capital markets. In addition to ordinary access, however, a more significant opportunity consists in the packaging of cryptocurrencies together with toxled assets of the US capital market in a way that meets institutional standards, remaining available in Asia. This will allow for a more solid, compatible and scalable system that combines established and digital finances.
Bitcoin also evolves beyond its role as a passive value warehouse. The financial instruments supported by Bitcoin enable restoration of Bitcoin (BTC) as security, unlocking liquidity when generating prizes. In order for Bitcoin to work effectively on institutional markets, it must be integrated with a structured financial system, which is consistent with regulatory standards, which makes it available and compatible for investors in various regions.
Centralized decentralized finances (DEFI) or “Cedefi” is a hybrid model that integrates centralized liquidity with transparency and defostors of DEFI and is another key element of this transition. In order for institutional players to be widely accepted, it must offer normalized risk management, clear regulatory compliance and deep integration with established financial markets. Ensuring that instruments based on Cedefi-Np., Trendized Treasures, BTC Restaking or UrruTUDed after credit-duties in recognized institutional frames will be key to unlocking large-scale liquidity.
The key change does not apply only to toxic assets. It is about creating a system in which digital assets can serve as effective financial instruments that institutions recognize and trust.
Why does it matter now
The next phase of cryptographic evolution depends on its ability to attract institutional capital. The industry is at the turning point: unless Crypto does not set grounds for a liquid capital movement between established markets and digital assets, it will have difficulty obtaining long -term institutional adoption.
Filling in US capital with Asian liquidity is not only an opportunity – it’s a must. The winners in the next phase of digital asset development will be projects that will solve basic defects in liquidity and security efficiency, consisting in the fact that for a truly global, interoperable financial system.
Crypto has been designed to be without borders. It is also time for its liquidity to be without borders.
Opinion: Jack Lu, CEO BONCIT.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
