The post How TradFi is validating crypto’s long-held truths appeared on BitcoinEthereumNews.com.

The following is a guest post by Mauricio Di Bartolomeo, Co-founder and CSO at Ledn. After years of dismissing the asset, Wall Street is finally recognising Bitcoin’s potential. At Bitcoin 2024 in Nashville, the air crackled not just with the usual enthusiasm, but with the unmistakable scent of vindication. As Donald Trump pledged allegiance to Bitcoin as a reserve asset and Cantor Fitzgerald talked through its plans for a sizable $2 billion Bitcoin financing facility, it became crystal clear: traditional finance is no longer just dipping its toes into digital assets; it is diving headfirst. Our industry’s long-held thesis is playing out before our eyes. An industry could not dream of a better endorsement. For years, we have been labeled as fringe, as a bubble, as a passing fad. We have been mocked, and vilified by the very institutions now scrambling to get a piece of the action. It is not just validation; it is a full-scale capitulation of the old system to the inevitable future of finance. This validation, however, requires an evolution. The digital asset industry needs to offer both the risk management expertise of traditional finance and the independence ethos of crypto. We have seen this movie before — TradFi players entering the crypto space with deep pockets but shallow understanding, and crypto-native firms stumbling as they try to offer traditional financial products. The strongest operators are those who can blend the best of both worlds. Building Bridges, Not Walls Back in 2018, my co-founder (Adam Reeds) and I found ourselves in a predicament familiar to many early Bitcoin adopters: why should Bitcoiners have to sell their precious assets to access liquidity? This simple question led us down the rabbit hole of Bitcoin-backed lending, a concept that seemed obvious to us but was met with skepticism by…

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Filed under: News - @ October 27, 2024 2:18 pm