Permissioned DeFi: Bridging Traditional Finance and Decentralised Systems

The convergence of traditional finance and decentralised finance (DeFi) is changing the way we look at global financial systems.

Moderated by:

Phillip Alexeev, head of growth at Crossfi

After successful exits in the 3D printing and virtual reality industries, Phillip steered the growth strategies of notable Web3 projects including Coinlist and Decentraland. Before joining Cross Finance, he served as Head of Growth at Binance.

Interviewees:

Jirayut (Topp) Srupsrisopa, founder and group CEO of Bitkub

Jirayut is one of Thailand’s leading Bitcoin and open blockchain experts with more than eight years’ experience in the industry. He founded Bitkub Capital Group Holdings Co., Ltd, the largest blockchain and digital asset group in Thailand.

Stephan Lutz, CEO of BitMEX

Stephan has played a key role in innovating at BitMEX, a leading crypto derivatives platform, launching one of the most-traded crypto market contracts: the perpetual swap. He currently directs BitMEX’s financial growth, expansion, and profitability.

Permissioned DeFi: A gateway to mass adoption

Permissioned DeFi is gaining traction as a bridge between the decentralised and regulated worlds.

These platforms aim to address barriers such as scalability and compliance, while retaining the innovative edge of blockchain.

“Permissioned DeFi bridges the gap between the regulated world and decentralised finance,” Topp explained.

Bitkub has grown rapidly by simplifying blockchain tools for everyday users.

“Our focus is on creating systems that anyone can use — even in regions with less financial literacy.”

CrossFi uses this technology to connect blockchain with traditional financial systems, making it easier for banks and other financial services to adopt crypto.

By partnering with platforms like LayerZero and designing flexible systems, CrossFi helps break down the technical barriers that often make these integrations difficult.

Regulation as the backbone of trust

As DeFi grows, regulatory frameworks are increasingly vital for fostering trust and security.

Lutz also emphasised the importance of security as the foundation for sustainable growth.

“Security is at the core of our operations. We have never lost a single coin in our history, thanks to cold storage practices and stringent internal protocols,” he noted.

In Thailand, regulation has also played a critical role in enabling growth.

“The SEC’s licensing framework gave us the clarity to educate users and grow responsibly,” said Topp.

By working within this regulatory structure, Bitkub has become Southeast Asia’s largest regulated digital asset exchange, with millions of users.

For CrossFi, bridging the gap between traditional finance and blockchain technology requires aligning innovation with compliance.

By creating infrastructure that meets regulatory standards, CrossFi ensures that banks and businesses can integrate crypto without sacrificing security or scalability.

This approach builds trust while encouraging adoption by lowering the barriers for institutions exploring the crypto space.

Education and accessibility: The keys to adoption

Beyond regulation and security, the broader adoption of decentralised finance hinges on making blockchain technology accessible and user-friendly.

Topp emphasised the role of education in fostering adoption, particularly in regions where financial literacy remains low.

“At Bitkub, we’ve focused on humanising blockchain technology. Our systems are designed so users don’t need to understand the complexities of blockchain to benefit from it,” he said.

Lutz highlighted how platforms like BitMEX are simplifying the entry point for institutional and retail users alike.

“We’ve introduced tools that cater to all levels of traders, from professionals to those just entering the market, with a focus on security and transparency,” he noted.

CrossFi takes a similar approach by prioritising user-centric solutions that make the integration of crypto and traditional finance seamless.

Its infrastructure includes features like real-time crypto-to-fiat conversion and tokenized banking services, enabling businesses and users to incorporate digital assets without extensive technical expertise.

This focus on usability ensures that DeFi can reach diverse demographics and foster global financial inclusion.

The road ahead: Collaboration and innovation

As blockchain adoption scales, collaboration between traditional financial institutions and decentralised platforms will be important.

These partnerships will enhance the efficiency, transparency, and scalability of financial systems, ultimately enabling broader adoption.

Lutz envisions a future where DeFi platforms take centre stage in the crypto ecosystem.

“DeFi and centralised exchanges can coexist, but the focus will increasingly be on transparency and secure trading environments,” he said.

As more users demand accountability from financial platforms, the importance of regulatory clarity and robust security measures will grow.

Topp also sees crypto playing a transformative role on a global scale.

“By 2028, I expect Bitcoin to become a strategic reserve for many nations, with a market cap reaching $100 trillion across the crypto ecosystem,” he predicted.

Real-world use cases like remittances and micropayments will continue driving adoption, solving inefficiencies in legacy financial systems.