Tensions between traditional finance and digital assets are rising… "Criticism of Bitcoin's financial strategy is unfair."
As the cryptocurrency industry becomes increasingly intertwined with institutional finance, tensions between the two sides are intensifying. The actions of companies linked to President Trump and the warnings from major banks are particularly noteworthy.
During its recent earnings call, the American investment bank JP Morgan issued a warning about interest-bearing stablecoins. They warned of the risk of creating a "parallel financial system" that mimics banking functions without fiduciary protections or regulatory standards. Jeremy Barnum, JP Morgan's Chief Financial Officer (CFO), stated, "The creation of interest-bearing, deposit-like assets without the prudential safeguards established by centuries of banking regulation is clearly dangerous and undesirable."
Despite these concerns, the cryptocurrency industry is rapidly evolving toward a regulation-friendly model. Wall Street's actions are also noteworthy. Morgan Stanley recently filed documents with the U.S. Securities and Exchange Commission regarding Bitcoin (BTC) and Solana (SOL)-based exchange-traded funds (ETFs), which Binance Research analyzed as "the next step toward institutional adoption." Some predict that Morgan Stanley's participation could spur responses from Goldman Sachs, JP Morgan, and others.
Trump-backed World Liberty Expands Stablecoin-Based Lending Business
World Liberty Financial, a company associated with President Trump, has made a full-fledged entry into the DeFi (decentralized finance) market by launching a new lending platform called "World Liberty Markets," centered around the stablecoin USD1.
The company designed the platform to allow users to deposit Ethereum (ETH), tokenized Bitcoin, USDC, and Tether (USDT) as collateral and borrow USD1. Co-founder Jack Folkman stated, "We are also exploring the possibility of tokenizing real assets like real estate and allowing them to be used as collateral in the future."
World Liberty Financial has also applied for a National Trust Bank charter from the Office of the Comptroller of the Currency (OCC). This is part of a strategy to increase the utility of USD1 in cross-border remittances and financial operations. USD1 currently has a market capitalization of approximately USD3.4 billion (approximately KRW 5.162 trillion).
Figure, Stock Lending and Borrowing on Blockchain...Physical Stock-Based Platform Launched
Blockchain infrastructure company Figure Technology has launched "OPEN," an on-chain lending marketplace based on physical stocks. This platform allows investors to directly borrow or provide their stocks as collateral without the need for traditional intermediaries.
Open allows companies to issue actual shares on Figure's blockchain, "Province," which are treated as "real stocks" rather than synthetic assets. Figure CEO Mike Cagney stated that several companies already operating digital asset-based financial strategies have expressed interest in issuing shares through Open. Figure currently has a market capitalization of approximately $12 billion (approximately KRW 17.706 trillion).
This move is a prime example of blockchain's penetration into the real-world financial business sector. With large financial institutions increasingly entering the cryptocurrency market, the debate over market scalability and regulatory gaps is expected to intensify.
Michael Saylor: "Bitcoin is the safest financial strategy."
Meanwhile, Strategy co-founder Michael Saylor recently directly refuted criticism of cryptocurrency financial strategies, particularly corporate practices adopting Bitcoin as a financial reserve. Saylor stated, "Holding Bitcoin is one of the most transparent and secure financial strategies adopted by millions of investors," interpreting recent warnings from the financial sector as "fear of the established system."
As digital assets become increasingly embedded within institutional finance, the debate over Bitcoin's financial role is intensifying. As the market transitions to the next phase of institutional adoption, Bitcoin remains at the center of the debate.
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This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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