Asia holds the crypto liquidity, but the US Treasurys unlocks institutional funds
Opinion by: Jack Lu, CEO of Bouncebit
For years, Crypto has promised a more open and efficient financial system. A major futility remains: the connectivity between US capital markets and Asian liquidity hubs.
The United States led the development of capital, and its recent embracing of tokenized wealth and real-world assets indicated a significant step towards the blockchain-based finance. Meanwhile. These two economies operate, however, in silos, limiting how capital can be moved seamlessly to digital properties.
It’s not just a hassle – it’s a structural weakness that prevents crypto from becoming a true institution owner. Resolving it will cause a new era of structured liquidity, making it better and attractive -digital assets to institutional investors.
Bottleneck’s capital that holds the crypto back
The effectiveness between US capital markets and Asian crypto hubs comes from regulatory deterioration and a lack of institutional financial instruments.
US companies are concerned to bring tokenized wealth to Onchain due to emerging regulations and compliance with burdens. Meanwhile, Asian trading platforms operate on other regulatory parades, with fewer trade barriers but are limited access to US-based capital. Without a unified framework, cross-border capital flow remains ineffective.
Stablecoins Bridge traditional finance and crypto by providing alternatives based on blockchain to Fiat. They are not enough. Markets require more of FIAT equivalent. To work well, they need yield-bearing, institutionally reliable assets such as US Treasurys and Bonds. Without it, institutional capital remains more out of crypto markets.
Crypto requires a universal collateral standard
Crypto should sprout beyond the simple tokenized dollars and develop structured, instruments that carry the yield that the institutions trust. Crypto requires a global collateral standard that relates to traditional finances to digital assets. This standard must meet three basic criteria.
First, it should offer stability. Institutions do not provide significant capital in an asset class without a stable foundation. Therefore, collateral should be supported by financial instruments in the world that provide constant yield and security.
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Second, it should be widely adopted. As Tether’s USDT (USDT) and USDC (USDC) have become de facto standards for FIAT -supported fiats, widely accepted assets with yields are required for institutional liquidity. Market degradation will continue without standardization, limiting crypto’s ability to combine with greater financial systems.
Third, it should be defi-native. These possessions should be composable and interoperable throughout the blockchains and exchanges, allowing capital to move freely. Digital assets remain locked in separate pools of liquidity without the integration of onchain, which prevents efficient market growth.
Without this infrastructure, the crypto will continue to operate as a fragment financial system. To ensure that both US and Asian investors can access -token financial instruments under the same security and management criteria, institutions require a seamless, following path for capital expansion.
Establishing a structured framework that aligned with crypto liquidity with financial principles at the institution will determine if digital possession can truly measure beyond their current limitations.
Institutional crypto’s rise of liquidity
A new generation of financial products begins to resolve this issue. Tokenized treasury, such as Biddled and USYC. These instruments provide an alternative to traditional stablecoins, which enables a better capital system to mimic the traditional currency market.
Asian exchanges are beginning to include these tokens, providing users accessing yields from US capital markets. Aside from accessing, however, a more significant opportunity lies in crypto exposure next to the tokenized US capital market assets in a way that meets institutional standards while remaining accessible to Asia. This will allow for a more stable, compliant and measured system that relates to traditional and digital finances.
Bitcoin is also emerging beyond its role as a passive value store. Financial instruments supported by Bitcoin allow Bitcoin (Btc) to be restored as collateral, unlocking liquidity while forming rewards. For Bitcoin to operate effectively within institutional markets, however, it should be integrated into a structured financial system that aligns with regulatory standards, making it accessible and compliant with investors throughout the regions.
The centralized financial decentralized (DEFI), or “Cedefi,” is the hybrid model that includes Defi’s centralized liquidity in transparency and composability, and is another major piece of this move. In order for this to be widely adopted by institutional players, it must offer a standard risk management, clear adherence to regulation and in -depth integration in traditional financial markets. Ensuring that the instruments based on the Cedefi-Hal-Hal, tokenized wealth, restoration of BTC or structured lending within the recognized institutional frameworks will be critical for unlocking large-scale liquidity.
Key Shift is not just about tokenizing properties. It is about creating a system where digital possessions can serve as effective financial instruments recognized and trusted by institutions.
Why is it important now
The next stage of crypto evolution depends on the ability to attract institutional capital. The industry is at a turning point: unless the crypto establishes a foundation for seamless capital movement between traditional markets and digital properties, it will struggle to obtain long-term institutional adoption.
Bringing US capital with liquidity in Asia is not just a chance – this is a necessity. The winners of the next stage of digital digital growth are projects that solve basic flaws in collateral liquidity and efficiency, placing the basis for a truly universal, coherent financial system.
The crypto is designed to be boundless. Now, it’s time to make it endless.
Opinion by: Jack Lu, CEO of Bouncebit.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
