The core appeal of Decentralized Finance (DeFi) lies in its characteristics of being intermediaries-free, transparent, and resistant to censorship. However, for any emerging technology to gain widespread adoption, it cannot completely detach itself from existing social and financial frameworks. The rise of Centralized Exchanges is the best example, as it sacrifices part of the purity of decentralization in exchange for the entry ticket of a large user base.
Similarly, when stablecoin issuers choose to allocate reserve assets in U.S. Treasury bonds, it is a strategic "bridging" that utilizes the most trusted assets in the traditional financial system to construct a bridge towards legitimacy and mass adoption for stablecoins.
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The core appeal of Decentralized Finance (DeFi) lies in its characteristics of being intermediaries-free, transparent, and resistant to censorship. However, for any emerging technology to gain widespread adoption, it cannot completely detach itself from existing social and financial frameworks. The rise of Centralized Exchanges is the best example, as it sacrifices part of the purity of decentralization in exchange for the entry ticket of a large user base.
Similarly, when stablecoin issuers choose to allocate reserve assets in U.S. Treasury bonds, it is a strategic "bridging" that utilizes the most trusted assets in the traditional financial system to construct a bridge towards legitimacy and mass adoption for stablecoins.