It's not "mobility killer" in the encrypted market

By Hu Hu, ChainCatcher

 

I. INVOLUNTARY MILITARY CORRECTIONS

Over the past few months, the dollarization stock is becoming one of the most topical topics in the encryption industry at an unprecedented rate。

From the emergence of platforms to support stock exchanges along the chain, to the growing number of exchanges and DeFi agreements that begin to organize related operations, to the increasingly clear regulatory environment, the monetization of US equity has evolved from a marginal concept to the most dynamic direction on the entire RWA (real world asset) track。

However, while the heat is rising rapidly, there is also a concern in the market that, when high-quality equity assets, such as Inverda, Tesla, Apple, Coinbase, are moved to the chain, will the funds that belong to the encrypted market be sucked away from these traditional assets? Will Bitcoin, the Ethera and even the Shancocoins face greater liquidity pressure as a result

This concern is not unfounded. For many ordinary investors, when transactions can also be made through chain accounts, on the one hand are encrypted assets that are highly volatile and lack cash flow support, and on the other hand, global head of technology companies with real business, profits and valuation systems, which appear to be more readily recognized as traditional finance。

But if time is stretched, one might find that this wave of dollarization of US shares is not a direct threat to the encryption industry, but is more likely to be the most important expansion of the encryption industry since DeFi Summer – and, of course, perhaps the most important one in encryption history。

In essence, United States equity assets are different from the vast majority of encrypted primary assets. Historical data and the flow of funds along the chain suggest that while short-term funds may be stoked when the asset class of the chain is expanded, in the medium to long term, capital with different risk preferences becomes complementary rather than a substitute in the chain。

More crucially, the prosperity of monetization shares is highly dependent on the securitization layers of the stable currency and the original public chain. Without USDC and USDT, there is no payment instrument for the purchase of stock coins; without Taifung, Solana or Base, there is no vehicle for issuance, trading and clearing; without DeFi, the holders of stock tokens cannot release their financial efficiency。

Investors may enter the chain in order to purchase stock coins, but a significant part of them will gradually be exposed to stable currency payments, chain lending, revenue products and even encrypted primary assets。

“Stabilized coins, dollar-equity monetization, etc., once in the chain, do not lie on the chain alone, must be mobile, and the combination of encryption will be fully utilized. Once there is a good narrative, a good project, not only will the funds of the encryption ring come in, but it will also flow out of the circle, which is just a competition. A famous encrypted researcher named Blue Fox。

According to DeFillama, the total TVLs of monetized stocks and ETFs now exceed $1.7 billion, and are the fastest growing vertical field of DeFi。

In the recent past, exchanges such as Binance, Bitget and Gate have announced the emergence of US stock trading functions and supported monetization and chaining, which means that the size of the US stock market will remain rapidly expanding and its market demand has been fully validated。

More symbolically, a growing number of traditional financial giants are also accelerating their deployment. In mid-May, the United States Securities Management Trust and Clearinghouse, the global securities clearing giant DTCC, announced the integration of Chainlink into the data and organization layers of its token collateral platform, followed by the announcement at the end of the month that DTC hosting asset monetization services would be located on the Stellar network, these developments also directly stimulated increases in the prices of the relevant tokens, which would directly benefit the use of infrastructure service providers in the encrypted market。

Such dynamics send an extremely clear signal that the traditional financial world is not only treating the block chain as a “competent” but rather is actively embracing the public chain as an infrastructure for clearing its assets. The selection of DTCC is not unique - Morgan Chase's Onyx platform, Citicorp's monetization service, Belet's Buidl Fund, and NASDAQ and Neutron's respective approved monetization stock schemes are all pointing in the same direction: The bottom-up architecture of global finance is undergoing a system-level “uplink” migration。

This is of double value to the encryption industry. On the one hand, it provides the strongest endorsement of the regulatory legitimacy and market credibility of monetized assets — when institutions like DTCC choose the public chain, it is tantamount to declaring to tens of thousands of financial institutions around the world that “chain assets can be trusted”. On the other hand, the entry of these institutions has led directly to the adoption of the existing encryption infrastructure service providers, the Chainlink data forecaster, the Stellar asset distribution standard and the smart contracting capability of the Taifeng, all of which have been validated by real demand in this process。

 

II. Advancing system-level upgrading of the global financial architecture

From a more macro point of view, perhaps the greatest significance of the dollar-denominated boom for the money ring is not how much “new money” it can bring, but, for the first time, its irrefutable demonstration to the traditional financial world of the real value of block chain technology。

Over the past decade or so, the encryption industry has been trying to demonstrate to the outside world the importance of block chains, but many narratives have remained at the level of technological vision. Instead, US equity monetization responds directly to the need for more efficient distribution, lower-cost flows, more transparent settlements, and wider global availability of capital markets. When Wall Street began to embrace these capabilities, the block chains were finally no longer just stories of the encryption industry itself, but began to become infrastructure upgrades in which the entire financial industry was involved。

Today, monetization is shifting from an early marginal experiment driven by the DeFi project to a mainstream financial track led by large financial regulators, trustees, exchanges and financial market infrastructure providers. The change in the dominant is in itself an indication that the “uplink movement” is not a “downgrading” of a financial game, but a system-level upgrade of the global bottom-up financial architecture。

And when global investors become accustomed to holding shares, bonds, funds and even real assets through block chains, the encryption industry will not only gain a hot spot, but a fundamental expansion of its value carrying capacity。

“The maturity of each market is essentially a process by which funds flow from inefficient assets to efficient assets. When the scrap currency is phased out and truly value-generating agreements, infrastructure and financial products are truly available, there is an opportunity for a more rational valuation. It may not be the end of the encryption market, but it is likely to be an important turning point for the encryption market from the “speculation market” to the “capital market.” Encryption traders said @Win Win Bro。

Therefore, rather than viewing United States equity monetization as a threat to the encryption industry, it should be seen as one of the most important milestones in the evolution of the block chain to the mainstream financial system。

When the $7.5 trillion United States stock market and encryption infrastructure are connected — even with a 2 per cent penetration rate — it's a $1.5 trillion new chain value. By that time, there will be no one to argue whether the monetization stock has been drained of liquidity or has injected unprecedented value anchors into the chain。