9
Apr, 2025
EU, China Hike Tariffs in Trade War Response
Altcoin News, Bitcoin News, Crypto Industries & Currency Updates
The European Union said it is implementing retaliatory tariffs on $20.9 billion worth of U.S. goods in three phases in response to President Donald Trump’s steel and aluminum import taxes. The EU’s delayed response is due to the need for unanimous approval from its 27 member states. However, the EU stated that the tariffs could […] …
9
Apr, 2025
DeFi security and compliance must be improved to attract institutions
Altcoin News, Bitcoin News, Crypto Analytics, Crypto Industries & Currency Updates
Opinion by: Sergej Kunz, co-founder of 1inch
Institutional players have been closely watching decentralized finance’s growth. Creating secure and compliant DeFi platforms is the only solution to build trust and attract more institutions.
Clear waters attract big ships
Over the past four years, institutional DeFi adoption has gone from 10% of hedge funds to 47%, and is projected to rise to 65% in 2025. Goldman Sachs is reaching their arms to DeFi for bond issuance and yield farming.
Early adopters are already positioning themselves in onchain finance, including Visa, which has processed over $1 billion in crypto transactions since 2021 and is now testing cross-border payments. In the next two years, institutional adoption will speed up. A compliant regulatory framework that maintains DeFi’s core benefits is necessary for institutional adoption to engage confidently.
DeFi’s institutional trilemma
It is no secret that many DeFi security exploits happen every year. The recent Bybit hack reported a $1.4 billion loss. The breach occurred through a transfer process that was vulnerable to attack. Attacks like these raise concerns about multisignature wallets and blind signing. This happens when users approve transactions without full details, rendering blind signing a significant risk. This case calls for stronger security measures and improvements in user experience.
The threats of theft due to vulnerabilities in smart contracts or mistakes by validators make institutional investors hesitate when depositing large amounts of money into institutional staking pools. Institutions are also at risk of noncompliance due to a lack of clear regulatory frameworks, creating hesitation to enter the space.
The user interface in DeFi is often designed for users with technical expertise. Institutional investors require user-friendly experiences that make DeFi staking possible without relying on third-party intermediaries.
Build it right, and they will come
Institutional interest in bringing traditional assets onchain is enormous, with the tokenized asset market estimated to reach $16 trillion by 2030. To confidently participate in DeFi, institutions need verifiable counterparties that are compliant with regulatory requirements. The entry of traditional institutional players into DeFi has led some privacy advocates to point out that it can counter the essence of decentralization, which forms the bedrock of the ecosystem.
Recent: Securitize to bring BUIDL tokenized fund to DeFi with RedStone price feeds
Institutions must be able to trust DeFi platforms to maintain compliance standards while providing a safe and seamless user interface. A balanced approach is key. DeFi’s permissionless nature can be achieved while maintaining compliance through identity profiles, allowing secure transactions. Similarly, transaction screening tools facilitate real-time monitoring and risk assessment.
Blockchain analytics tools help institutions to maintain compliance with Anti-Money Laundering regulations and prevent interaction with blacklisted wallets. Integrating these tools can help detect and prevent illicit activity, making DeFi safer for institutional engagement.
Intent-based architecture can improve security
The relationship between intent-based architecture and security is evident; the very design is built to reduce risks, creating a more reliable user experience. This protects the user against MEV exploits, a common issue of automated bots scanning for large profitable trades that can be exploited. Intent-based architecture also helps implement compliance frameworks. For instance, restricting order submissions to clean wallets and allowing resolvers to settle only the acceptable orders.
It’s well understood that in traditional DeFi transactions, users rely often on intermediaries like liquidity providers to execute trades or manage funds. This leads to counterparty risk, unauthorized execution and settlement failure. The intent-based architecture supports a trustless settlement that ensures users commit only when all conditions are met, reducing risk and removing blind trust from the picture.
DeFi platforms must simplify interactions and UX for institutional investors. This system bridges the gap between. Through executing offchain while ensuring security, the intent-based architecture makes DeFi safer and more efficient. However, one of the challenges to this includes integrating offchain order matching while maintaining onchain transparency.
Late adopters of DeFi will struggle to keep up
For the early adopters of DeFi, there is a competitive advantage in liquidity access and yield advantages, whereas late adopters will face more regulatory scrutiny and entry barriers. By 2026, the institutional players that have failed to adopt DeFi may struggle to keep up. This is seen in the examples of early adopters like JPMorgan and Citi’s early tokenization projects. TradFi leaders like them are already gearing up for onchain finance.
The way forward
Regulatory bodies, supervisory agencies and policy leaders must provide clear, standardized guidelines to facilitate broader institutional participation. Uniform protocols underpinning wider institutional involvement are underway. DeFi platforms must be prepared beforehand to provide all the necessary pillars of compliance and security to institutional players who want to embrace mainstream adoption. Executing this shall require combined efforts from regulators, developers and institutions.
Opinion by: Sergej Kunz, co-founder of 1inch.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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9
Apr, 2025
Bitcoin’s safe-haven appeal grows during trade war uncertainty
Altcoin News, Bitcoin News, Crypto Analytics, Crypto Industries & Currency Updates
The global trade war may be a silver lining for Bitcoin’s growing recognition as a safe-haven asset next to gold, thanks to its liquidity and accessibility advantages compared to precious metals.
Financial markets have been rattled since US President Donald Trump’s April 2 reciprocal import tariffs announcement, leading to record-breaking sell-offs for traditional stock markets and a Bitcoin (BTC) correction below $75,000.
While gold remains the dominant refuge for investors during geopolitical stress, analysts say Bitcoin’s digital nature and 24/7 liquidity are helping it attract renewed interest.
“You want to store value in something other than U.S. assets. But you don’t want to own other nations’ currencies/debt/assets because they’re even weaker and you expect they’ll debase it,” said Hunter Horsley, CEO of crypto asset manager Bitwise, in an April 9 post on X.
“You look around, and you see it: an asset that can’t be debased, is controlled by no country, and that you can take into your possession immediately. You wind up buying Bitcoin,” Horsely said.
Source: Hunter Horsley
Despite the growing optimism, gold will likely remain the dominant asset, especially in the near term, Aurelie Barthere, principal research analyst at Nansen crypto intelligence platform told Cointelegraph, adding:
“Bitcoin is promising, but it’s still quite volatile, it could get there gradually. The PBOC has been shedding U.S. Treasury holdings and increasing gold reserves for years. Therefore, I expect this trend to accelerate regardless of the crypto narrative.”
Related: 4th gen crypto needs collaborative tokenomics against tech giants — Hoskinson
China’s Finance Ministry on April 9 announced new tariffs of up to 84% on US imports, effective April 10, as a retaliatory measure against Trump’s policy. Analysts believe a resolution could reduce uncertainty and reignite appetite for risk assets like crypto.
China’s tariffs come as a retaliatory response to Trump’s tariff plan, which imposed a 34% tariff on Chinese imports, effective April 9.
Some industry analysts see Trump’s global tariff negotiations as mere “posturing” for the US to reach an agreement with China, a development that may end global trade uncertainty and see risk assets such as crypto recover.
Related: Bitcoin ETFs lose $326M amid ‘evolving’ dynamic with TradFi markets
China, Russia reportedly using Bitcoin for settlement
Some nations are already taking steps toward using crypto assets for settlement in global trade.
“China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets,” wrote Matthew Sigel, head of digital assets research at VanEck, in an April 8 note. “These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool.”
Sigel noted other examples, including Bolivia’s plans to import electricity using crypto and French utility firm EDF’s exploration of using surplus power to mine Bitcoin.
“These developments reflect a growing interest in neutral settlement rails, especially among economies looking to bypass the U.S. dollar,” he said.
Previous reports also indicated that Russia is using Bitcoin and stablecoin for international oil trade to circumvent global sanctions.
Bitcoin’s evolving “volatility profile” also points to BTC “gradually maturing from a risky asset to a safe-have asset,” wrote André Dragosch, macro analyst and European head of research at Bitwise.
While the tariff uncertainty will continue limiting risk appetite during the negotiations, positive developments could bring renewed investment into crypto markets.
“We’ll start to see the rotation toward the crypto markets in the coming period where there’s more calm and peace in the markets where investors start to buy the dip and understand that some things have been undervalued,” Michaël van de Poppe, founder of MN Consultancy, told Cointelegraph.
Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
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