The post Asia holds crypto liquidity, but US Treasurys will unlock institutional funds appeared on BitcoinEthereumNews.com.

Opinion by: Jack Lu, CEO of BounceBit For years, crypto has promised a more open and efficient financial system. A fundamental inefficiency remains: the disconnect between US capital markets and Asia’s liquidity hubs. The United States dominates capital formation, and its recent embrace of tokenized treasuries and real-world assets signals a significant step toward blockchain-based finance. Meanwhile, Asia has historically been a global crypto trading and liquidity hub despite evolving regulatory shifts. These two economies operate, however, in silos, limiting how capital can move seamlessly into digital assets. This isn’t just an inconvenience — it’s a structural weakness preventing crypto from becoming a true institutional asset class. Solving it will cause a new era of structured liquidity, making digital assets more efficient and attractive to institutional investors. The capital bottleneck holding crypto back Inefficiency between US capital markets and Asian crypto hubs stems from regulatory fragmentation and a lack of institutional-grade financial instruments. US firms hesitate to bring tokenized treasuries onchain because of evolving regulations and compliance burdens. Meanwhile, Asian trading platforms operate in a different regulatory paradigm, with fewer barriers to trading but limited access to US-based capital. Without a unified framework, cross-border capital flow remains inefficient. Stablecoins bridge traditional finance and crypto by providing a blockchain-based alternative to fiat. They are not enough. Markets require more than just fiat equivalents. To function efficiently, they need yield-bearing, institutionally trusted assets like US Treasurys and bonds. Without these, institutional capital remains largely absent from crypto markets. Crypto needs a universal collateral standard Crypto must evolve beyond simple tokenized dollars and develop structured, yield-bearing instruments that institutions can trust. Crypto needs a global collateral standard that links traditional finance with digital assets. This standard must meet three core criteria. First, it must offer stability. Institutions will not allocate meaningful capital to…

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Filed under: News - @ April 12, 2025 7:18 pm