"Traditional Financial Giants and Crypto Retail Investors Will Give Birth to New Tracks in 2025"

Written by: Deep Tide TechFlow

At the end of 2024, HTX Ventures made predictions about the 2025 crypto market in their article titled "2024 Crypto Market Review and 2025 Outlook."

Now that more than half of 2025 has passed, the development of the crypto market is indeed highly consistent with HTX Ventures' expectations: whether it is the clarity of global crypto regulatory policies led by the United States, the strong rise of RWA, the trend of tokenizing stocks, or the imitation of Strategy by numerous listed companies to launch crypto treasury strategies… In the deeper integration with traditional finance, more funds and users from traditional financial markets have been absorbed.

As the strategic investment arm of Huobi HTX, HTX Ventures has also become a key player in grasping trends in the crypto landscape. In this in-depth conversation with Alec Goh, the head of HTX Ventures, regarding the potential of the RWA sector, Alec shared:

HTX Ventures is optimistic about the long-term development of RWA and believes that the core growth engine for the next phase of the RWA track will be highly mature assets in traditional finance, such as* U.S. Treasury* and other sovereign* bonds*.

When discussing the stock effect of TRON and the entire Huobi HTX ecosystem, Alec stated:

U.S. Nasdaq-listed company SRM Entertainment, Inc. announced in June this year that it adopted the TRX treasury strategy, rebranded as Tron Inc., and changed its stock code to TRON. This not only enhanced the global exposure and recognition of TRON but also the traffic and liquidity brought by the breakout effect will benefit the entire Huobi HTX ecosystem.

From predicting trends to laying out strategies, how has HTX Ventures formed this forward-looking perspective that has withstood market scrutiny?

In the current context where DeFi and TradFi show a stronger positive correlation, what is the key to sustainable development?

In this issue, let us follow Alec's perspective and delve into HTX Ventures' market observations, strategic implementations, and future assessments.

Optimistic about RWA, focusing on products with stable demand and strong institutional trust

Deep Tide TechFlow: Thank you for your time, and first, please introduce yourself.

Alec:

Hello everyone, I am Alec Goh, the head of HTX Ventures, and I am glad to communicate with you all.

I have been with Huobi HTX for nearly four years, previously working in mergers and acquisitions and strategic investments. Last year, I officially took over as the head of HTX Ventures, which is the strategic investment department of Huobi HTX exchange.

Before entering Web3, I worked as an investment banker at Goldman Sachs and Deutsche Bank, focusing on private equity, credit products, and mergers and acquisitions in the Asia-Pacific and European regions.

I have relevant experience in both traditional finance and crypto-native finance, and in the current context of the accelerating integration of Web2 and Web3, I believe this will help me perform my work better, as building a bridge between traditional finance and the crypto world is also an important strategic direction for Huobi HTX. In the future, I will work with my team to grasp key market trends and promote a more efficient collaborative development between traditional finance and the crypto financial ecosystem.

Deep Tide TechFlow: RWA has made significant progress this year. How does HTX Ventures view the role of RWA in driving the next phase of growth in DeFi?

Alec:

From HTX Ventures' perspective, we have always been very optimistic about the RWA sector. After achieving PMF (Product-Market Fit) in stablecoins, payments, and DeFi lending, RWA is an important force driving Web3 towards broader mainstream adoption in the next phase.

I say this because there is already a significant amount of liquidity in the Web3 space, with the circulation scale of stablecoins being around $200-300 billion. This capital needs to find a direction for allocation. DeFi users are continuously seeking more efficient capital allocation strategies with clearer risks and returns, and RWA provides a legitimate and orthodox way to deploy funds.

In our view, the value of RWA mainly lies in the following four aspects:

First, RWA unlocks liquidity. Many traditional assets do not have high liquidity in the traditional financial system, such as real estate or private equity, which are often traded at significant discounts of 20-30%. If these assets are brought on-chain in the form of RWA, it can release suppressed liquidity, create more value for traditional finance, and also allow DeFi investors to access products they previously could not reach.

Second, RWA opens up global markets. Some assets in traditional finance can only be invested in specific jurisdictions. If these assets are tokenized, they can be traded globally through DeFi on-chain. Blockchain is borderless, so RWA can reach a broader investor base, which is difficult to achieve with traditional structures.

Third, RWA reduces costs** and improves efficiency.** In traditional finance, asset trading involves multiple intermediaries, which not only slows down the process but also typically only operates on business days. DeFi operates 24/7, at low cost and high efficiency. This efficiency makes it easier for previously hard-to-trade low-liquidity assets to be invested in and circulated.

Finally, RWA brings transparency and security. Blockchain ensures that every transaction is immutable and traceable; once recorded, it cannot be changed. This transparency and the trust foundation built on consensus are very important for investors.

For all these reasons, we have always been optimistic about RWA, and this trend has recently accelerated. Stablecoins have experienced rapid growth and widespread adoption, and I believe RWA will become the next important use case driving the large-scale adoption of DeFi after stablecoins.

Deep Tide TechFlow: What specific projects or areas related to RWA (such as tokenized* bonds*, real estate, or stablecoins) will HTX Ventures prioritize investing in the second half of 2025?

Alec:

We believe that the core growth engine for the next phase of the RWA track will be highly mature assets in traditional finance, such as* U.S. Treasury* and other sovereign* bonds*.

Currently, the TVL of many leading RWA platforms is concentrated in tokenized U.S. Treasuries. These assets not only have a large scale but also possess a broad trust foundation backed by government support, with very stable and reliable returns. These assets will become the first step in driving RWA adoption, attracting more capital. As users experience these products, once their trust in RWA is established, they will be more actively exploring higher-yield products and strategies, such as real estate or private equity, which we believe aligns with the market evolution logic.

In addition, tokenized stocks are also a very interesting direction we are paying attention to. The public has more understanding of stocks and is more sensitive to their price changes. Bringing stocks on-chain for high-frequency transparent price discovery will lead to higher liquidity.

Overall, we are more focused on RWA products that have stable demand and strong institutional trust.

Deep Tide TechFlow: What are the key technologies or market challenges for expanding RWA adoption? How does HTX Ventures address these challenges through its portfolio?

Alec:

In terms of our portfolio, we are still actively looking at the most reasonable capital allocation methods in the RWA space. Tokenized stocks and tokenized U.S. Treasuries are already quite mature, and bringing them on-chain will not encounter too many technical issues.

We believe the next major challenge is how to bring unlisted assets from traditional finance into DeFi, which is the real difficulty.** The most significant issue is how to prove the legitimate ownership of these assets. In other words, when something is traded on-chain, how can we ensure that it has valid legal ownership behind it? This issue has not been fully resolved by any project yet, as it involves cross-jurisdictional issues. What is recognized in one jurisdiction may not apply in another, which brings complexity.

I think this area is very interesting for project exploration and worth paying attention to for investors, as solving this problem will bring significant value to investors. However, I believe this is not a problem that can be solved immediately; it requires time, resources, and careful coordination with market demand. Not all assets can or should be brought on-chain; it largely depends on whether there is actual demand.

As I mentioned, RWA is currently mainly focused on some well-known assets, such as U.S. Treasuries and stocks, which can be relatively easily tokenized. For RWA to achieve further development, it requires not only VCs and crypto* startups* but also the participation of traditional financial institutions to provide the infrastructure and framework that can bring trust to the community.

From HTX Ventures' perspective, we see a clear gap and are actively looking for opportunities to fill it. However, we have not yet taken action because, based on the dimensions shared earlier, we have not seen sufficiently convincing infrastructure that can positively address these challenges.

Tokenized stocks bring significant exposure and liquidity, and the spillover value will empower the entire ecosystem

Deep Tide TechFlow: The concept of "synergy between tokenized stocks" has gained widespread attention, with Tron Inc. being an example. How does HTX Ventures assess the potential of this model to connect cryptocurrencies and traditional capital markets?

Alec:

For this question, we see multiple pathways to realization: one is bringing traditional assets on-chain, and the other is introducing blockchain assets into traditional finance. Both have performed well recently and seem to be accelerating.

The TRX treasury strategy of TRON Inc. is an encouraging case that demonstrates that traditional financial industries and stock investors have begun to accept crypto assets, and some of these companies are performing well. From our perspective, we find this trend very interesting, and in the future, there may be more crypto companies exploring paths in traditional capital markets, but this depends on their compliance maturity, financial transparency, governance completeness, and market environment.

Currently, those making actual progress in this area are mostly OG projects that have been established for a long time and have high brand spillover. They have a first-mover advantage in terms of recognition and trust accumulation, making it easier for them to gain acceptance.

In summary, we remain optimistic about this trend, believing it is beneficial for market development and will continue in the future.

Deep Tide TechFlow: With giants like BlackRock and Goldman Sachs showing interest in the post-listing performance of cryptocurrencies, what role does HTX Ventures play in facilitating institutional capital inflow into blockchain projects?

Alec:

We are not just investors, nor are we solely focused on obtaining investment returns; we also want to drive industry development.

In addition to investing in projects and helping them grow, we also provide advice and introduce projects to other key participants both within and outside the industry, which is our most fundamental work.

Moreover, we establish thought leadership and increase our presence through online articles, participation in offline traditional finance conferences, and other means, educating traditional participants in a gradual and gentle manner about what Web3 can offer. This is because it is a system very different from their original world. Although Web2 and Web3 are accelerating their integration, many concepts are still not fully grasped by Web2 users.

For example, I will be attending a traditional finance VC event in Jakarta next month. In the past, such events rarely invited Web3 projects or institutions, but now many organizers realize that more and more people are interested in Web3 but still do not understand the field.

What we do is fill the cognitive gap between Web2 and Web3 through educational participation, building an effective communication bridge.

Taking Tron Inc. as an example, this model allows traditional participants to engage with crypto assets in a way they are familiar with. All they need to do is purchase stocks through traditional brokers. After establishing recognition and trust in this way, these users will next explore genuine on-chain participation. We believe this adoption path is clear and is gradually being realized.

As industry participants, our responsibility is to slowly educate users and help them adapt to this process easily. While this takes time, conducting training and educational work will undoubtedly accelerate this process.

Deep Tide TechFlow: The synergy of tokenized stocks has brought new volatility and regulatory considerations. How does HTX Ventures balance risks when investing in projects related to this trend?

Alec:

This is a very new and early-stage field, and there are indeed many issues that have not been fully covered by regulations when it comes to balancing risks.

For us, we focus on two main aspects:

First, whether the team is genuinely committed to building: The evaluation dimensions include both the underlying infrastructure and the team's emphasis on compliance and security. If a project demonstrates a true commitment to compliance and security, we see it as a positive signal that helps us build confidence in our risk assessment.

Second, we hope projects will abandon the notion of short-term speculation and instead focus on building core businesses, refining products and capabilities from the ground up.

Overall, we place great importance on the team's strength and their commitment to proactively addressing risks. Although this field is still in its early stages and many issues remain unresolved, as long as the team shows a clear path of sustained investment to address these issues, we can gradually build confidence.

Deep Tide TechFlow: The "TRON Treasury Strategy" established by Nasdaq-listed Tron Inc. incorporates TRX into its strategic reserve assets, significantly promoting the growth of the TRON ecosystem in various aspects (e.g., JustLend DAO, SunPump, USDT dominance, etc.). How does HTX Ventures view the positive impact of Tron Inc. and its TRON Treasury Strategy on enhancing the visibility and liquidity of TRON's portfolio projects?

Alec:

This plan will greatly enhance the exposure and liquidity of blockchain ecosystem tokens, bringing attention and capital from the traditional financial sector onto the chain. Once the TRX token gains higher recognition, and even entities related to TRX are included in mainstream index data like Nasdaq, this trust and liquidity in TRX will transmit to other projects within the ecosystem, further driving the prosperity of the entire ecosystem.

This is a positive feedback loop: listing brings visibility → token liquidity increases → downstream applications are adopted more quickly → network expansion feeds back upstream. From an investment perspective, we are also actively looking for projects that can amplify this positive feedback loop.

Protocols like JustLend and SunSwap have already significantly benefited from this narrative and capital inflow. In the future, we will also use cross-border collaboration, strategic partnerships, targeted funding, and accelerator programs to further convert the volume brought by the TRON Treasury Strategy into sustainable growth.

Deep Tide TechFlow: The TRX MicroStrategy plan aims to enhance institutional-level awareness, with the long-term goal of qualifying entities related to TRON to be included in traditional financial mainstream indices. If this model is validated, will Huobi HTX replicate the same approach across the entire Huobi HTX ecosystem? Is it possible for this method to be reproduced on Huobi HTX?

Alec:

We have been actively exploring various possibilities in this area. The adoption of the TRX treasury strategy by Nasdaq-listed Tron Inc. is quite significant, attracting a lot of attention and bringing positive effects, creating a positive feedback loop for the entire TRON ecosystem.

As for Huobi HTX and others, I cannot share more due to confidentiality reasons, but we do see this as an interesting trend, observe positive impacts, and are actively evaluating similar directions.

The crypto market is maturing, focusing on policies and macro institutional data

Deep Tide TechFlow: Besides RWA and the synergy of tokenized stocks, what emerging areas (such as artificial intelligence, SocialFi, Layer 2) does HTX Ventures believe have huge potential in the second half of 2025?

Alec:

Before answering this question, I think we can first review which sectors have driven the development of the crypto ecosystem over the past year.

A very obvious trend is that the crypto market is maturing; it is transitioning from a high-volatility niche market to a market supported by regulatory discussions and policy backing. Even the United States, which previously had a less friendly attitude, is now actively implementing supportive policies and formulating very clear regulations to explore crypto development.

Additionally, the crypto market is further integrating with the global macro economy: Factors such as the pace of U.S. dollar liquidity, interest rate path expectations, and U.S. stock indices are increasingly impacting the crypto market. Crypto assets are no longer solely reliant on "endogenous narratives" but are being incorporated into a broader global multi-asset investment framework.

Looking ahead, I believe the trends for the second half of this year and even longer will be defined by the following three major factors:

First, the very favorable policy tailwinds from the U.S. This policy advantage will replicate globally, ultimately aiding crypto development. Second, focus on macro market changes, including the dollar cycle, liquidity environment, and the evolving correlation between crypto assets and the dollar index and stocks. The third point is to pay attention to institutional flow and depth, including ongoing ETF (spot/futures, etc.) capital inflows, enhanced depth in the derivatives market, and the construction of more professional financial and compliance infrastructure. We are closely tracking these three main lines.

We believe the next phase of innovation momentum will largely depend on further regulatory easing and the improvement of key financial infrastructure. Against this backdrop, we remain optimistic about the RWA sector, as it is becoming a bridge connecting traditional finance and Web3: on one hand, it introduces compliant capital and institutional-level risk control frameworks; on the other hand, it brings real yield and regulated asset types to Web3, attracting more capital and talent, accelerating the breakout development of the crypto industry.

Deep Tide TechFlow: Based on your insights, what differentiations do you see in crypto development across different countries/regions? For example, the different focuses in Hong Kong, South Korea, Japan, and the United States?

Alec:

In my view, there are indeed significant differences in user investment preferences across different countries/regions.

Taking Asia as an example, including Japan, Singapore, and to some extent Hong Kong, users resemble traditional investors, with most of their funds allocated to real estate investments. Therefore, early adoption of RWA in these regions is likely to first concentrate in the real estate sector.

Japan's relatively clear regulatory stance will be one of the main driving forces for RWA development. Recent stablecoin legislative progress in Singapore and Hong Kong provides a compliant foundation for efficient capital on-chain and product innovation. Especially the stablecoin framework provides fundamental support for cross-border liquidity and settlement efficiency.

As for South Korea, I am not very sure about the development situation there, but from the perspective of investor preferences, the South Korean market is very unique. South Korean traders tend to prefer trading tokens with high potential for significant price increases rather than asset-backed or yield-anchored products. The product-market fit for real estate RWA in South Korea still needs further validation.

Deep Tide TechFlow: Based on HTX Ventures' investments and market insights for 2024, what are your main predictions for the trends in the blockchain industry in the second half of 2025?

Alec:

As I mentioned earlier, I believe that future industry trends will definitely be primarily driven by policies, institutions, and traditional stock investors. Once these users accumulate relevant experience and build trust by participating in the crypto market through simpler methods and safer channels, they will ultimately shift their attention and capital to on-chain activities. We believe this will be an unstoppable trend.

Moving away from speculation, focusing on compliance and fundamentals, and cultivating adaptability and resilience

Deep Tide TechFlow: HTX Ventures emphasizes Web3 and sustainable* business models*. In the turbulent cryptocurrency market, how do you define "sustainable innovation"?

Alec:

We are now in a phase that is completely different from the early stage filled with speculation. Our core focus is on fundamentals, which means deeply researching teams and products that truly have product-market fit. We have moved past the very early and primitive stages of the industry, and we no longer chase trends or high prices. Those altcoins that were once heavily promoted and experienced dramatic price fluctuations have not performed well in this cycle. The market has made it clear: fundamentals are key.

Secondly, we focus on compliance and security, as the acceleration of clarity in regulatory frameworks is a positive driving factor for the industry. Therefore, while paying attention to fundamentals, we also invest a lot of energy to ensure compliance and security resilience.

We believe that this dual focus on "fundamentals + compliance and security" not only helps with long-term returns but also drives Web3 in the right direction.

Deep Tide TechFlow: How does HTX Ventures promote collaboration between investment projects to drive innovation across the entire ecosystem?

Alec:

Pure funding support is something any VC can basically do. As the strategic investment department of an exchange, we also provide advisory support, professional insights, and the ability to connect with the right resource networks. We facilitate partnerships for the projects we invest in. For example, in the BTCFi ecosystem, we have a high level of participation in the Bitcoin ecosystem, and we introduce projects like Babylon to our staking partners and institutions that hold a large amount of BTC and wish to participate in staking.

In addition, we offer listing advisory services, explaining requirements, connecting personnel, and following up on process steps to the projects. In summary, we have a very comprehensive approach that serves the entire lifecycle of the projects, helping them achieve success in the crypto space.

Deep Tide TechFlow: As a pioneer in blockchain investment, how does HTX Ventures plan to maintain its advantage in identifying and nurturing the next generation of blockchain unicorns?

Alec:

First, we invest a lot of resources in research to understand user interests and needs, as well as to investigate what leading projects are building, in order to capture emerging trends in the industry early. This part of the work is more about passive perception, as it focuses on capturing and researching market signals.

In terms of forward-thinking, I am also trying to look ahead and predict the future, sharing these insights in some recent activities/articles. Currently, a direction that is particularly attractive to us is connecting the crypto/Web3 space with the traditional world, and we are actively promoting this.

Deep Tide TechFlow: What advice would you give to entrepreneurs and investors looking to seize opportunities and challenges in the blockchain industry in the second half of 2025?

Alec:

Looking back at the last cycle, many projects, especially L1s, received massive funding, but their price performance was mediocre after the TGE.

The current market is highly volatile and unpredictable. My core advice to everyone is: continuously improve market adaptability and build resilience, be decisive in pivoting when better development directions emerge, be prepared for volatility, and remain prudent.

More importantly, always adhere to a long-term vision centered around creating real value for end users, as this is the only path for projects to achieve sustainable success. Do not chase every new trend or fleeting hype; the long-term vision is key.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。