The disconnect between US capital markets and Asia’s liquidity hubs is a structural inefficiency hindering crypto's evolution as an institutional asset class. While the US has recently embraced tokenized treasuries and real-world assets, Asia remains a significant hub for crypto trading despite differing regulatory landscapes. This fragmentation limits seamless capital flow into digital assets, rendering crypto markets less attractive to institutional investors. There is a pressing need for a universal collateral standard that links traditional finance to digital assets, characterized by stability, widespread adoption, and DeFi-native attributes. Recent innovations, such as tokenized treasuries and Bitcoin-backed financial instruments, are helping to address these inefficiencies. Centralized decentralized finance (CeDeFi) is emerging as a model that integrates traditional liquidity with DeFi’s principles, promoting regulatory compliance and risk management. To attract institutional capital, crypto must ensure the efficient movement of funds between traditional markets and digital assets. Bridging the liquidity gap between US capital and Asian markets is crucial for the industry's long-term growth and sustainability.

Source 🔗