Decentralized Finance×TradFi: The Next k Billion-Level Track?

Alliance DAO's QwQiao recently made a bold statement: DeFi projects using traditional financial assets (TradFi) as collateral may have a potential market size that far exceeds that of the pure encryption ecosystem.

The core logic is clear - whether it is TradFi asset trading or collateral lending, these types of projects break down the barriers between traditional finance and blockchain, expanding the potential customer base from hundreds of thousands of encryption users to billions of traditional finance participants.

What is more critical? It breaks the self-circulation of pure encryption assets. The current DeFi ecosystem has a clear feedback loop trap—cryptocurrency prices drop → collateral devalues → lending risks rise → liquidity dries up → prices continue to bottom out. Introducing TradFi assets as a value anchor can significantly reduce this systemic risk.

Of course, regulation has always been a stumbling block. However, QwQiao believes that the winds are changing and the policy environment is loosening. Looking at the successive advancement of encryption regulatory frameworks in the United States and the European Union, compliance may no longer be a false proposition.

The question is: Which projects are making substantial progress in this direction? Will players like Ondo Finance and Matrixport become the driving force of the next wave of growth?