On April 21, 2025, the International Monetary Fund (IMF) and the World Bank Spring Annual Meeting released a clear signal: the global financial system is undergoing an unprecedented digital transformation. Conference data showed that the application scale of blockchain technology in cross-border payments, asset securitization and trade finance increased by 67% year-on-year, of which institutional blockchain infrastructure investment accounted for more than 40% for the first time. This trend has created a historic development opportunity for decentralized finance (DeFi) platforms, indicating the wave of accelerated digital transformation in the global financial market. Blockchain technology is reshaping the financial infrastructure landscape at an unprecedented speed.

The EU Digital Operational Resilience Act (DORA) officially came into effect in January 2025, marking a new stage in global blockchain regulation. The Act establishes a unified cybersecurity standard and requires all digital asset service providers to pass the dual compliance certification of "stress testing + real-time monitoring". Against this background, XBIT took the lead in completing a comprehensive audit by the European Financial Supervisory Authority (ESMA) and became the first decentralized exchange to obtain a "Level 4 Digital Asset Service Provider" license.

Global policy dividends are released, and the demand for blockchain infrastructure is surging.

Data shows that in the first quarter of 2025, global compliant blockchain project financing amounted to US$48 billion, of which institutional funds accounted for 58%. With its strict KYC/AML mechanism and transparent on-chain audit system, XBIT has successfully attracted traditional financial institutions such as BlackRock and Fidelity to configure digital assets through its platform, and the asset management scale (AUM) of institutional users has increased by 210% quarter-on-quarter.

The regulatory framework of blockchain technology in major economies around the world has entered a new stage. The digital asset regulatory standards among member countries have also promoted financial institutions to accelerate their migration to blockchain through measures such as tax incentives and R&D subsidies. According to the latest report by the Bank for International Settlements (BIS), the number of digital currency (CBDC) projects of major central banks around the world has exceeded 30, of which 12 projects have entered the pilot stage. The efficiency bottleneck of the traditional financial system is being broken by XBIT blockchain technology. Through multi-layer architecture design, it has achieved the ability to process 100,000 transactions per second while maintaining a sub-second confirmation speed, which provides a solid technical foundation for institutional-level transactions.

Technological innovation builds core competitiveness and redefines on-chain transaction standards.

Facing the threat of quantum computing, XBIT invested $120 million in R&D funds to build a multi-layer security system based on lattice-based cryptography. Its cold wallet system adopts the "12/15 multi-signature + geographically distributed storage" solution, and private keys are stored in professional vaults in Switzerland, Singapore, and the UAE. Third-party security assessments show that the theoretical cost of cracking the system is as high as $350 million, creating a new industry standard.

The unique ZK-Rollups expansion solution achieves a throughput of 2,300 transactions per second, and the transaction confirmation time is shortened to 0.8 seconds. Even more groundbreaking is its "Atomic Cross-Chain Protocol", which supports the seamless exchange of 16 mainstream public chain assets, including Bitcoin, Ethereum and Solana. Actual measured data shows that the success rate of large cross-chain transactions has increased from the industry average of 82% to 99.6%, and the slippage is controlled by 0.3%.

The AI risk control engine deployed on the platform is connected to 12 mainstream Oracle data sources and can monitor more than 140 market indicators in real time. In the market flash crash on April 12, the system triggered the circuit breaker mechanism 37 seconds in advance, avoiding a series of liquidations worth $240 million. According to statistics, the risk control system has reduced the overall risk exposure of the platform by 42% and the frequency of insurance fund use has dropped by 68%.

The institutional-level product system is becoming more and more perfect, from perpetual contracts to on-chain options.

XBIT's perpetual contract products introduce a "dynamic margin" mechanism, which automatically adjusts the leverage multiple (5-100 times) according to market volatility. Its unique funding rate algorithm controls the long-short imbalance rate within ±3%, which is much better than the industry's average level of ±15%. As of the end of April, the open positions on perpetual contracts exceeded US$9.2 billion, accounting for 21% of the global DEX market share.

The platform's innovative products such as "Snowball Options" and "Shark Fin Wealth Management" have an annualized yield that is 300-500 basis points higher than similar products of traditional banks. In particular, its principal-guaranteed wealth management products linked to the US dollar stablecoin have a seven-day annualized yield that is stable in the range of 8.5%-12%, attracting more than 73,000 institutional customers to subscribe.

Ecological layout builds a complete value chain, from trading platforms to financial infrastructure.

XBIT has established a global institutional customer service network, with institutional business centers in Zurich, Hong Kong and New York, providing 24-hour multi-language support. Its API interface, designed specifically for institutions, has an average latency of only 17 milliseconds and supports 3,000 queries per second to meet the needs of high-frequency trading.

Through the "Market Maker Incentive Program", XBIT aggregated 21 top market makers including JumpTrading and Wintermute, and built a liquidity pool with a total size of US$4.5 billion. This allows the spread of large transactions (a single transaction exceeding US$5 million) to be compressed to 0.05%, reaching the level of traditional exchanges.

The "RegTech2.0" system developed by the platform can automatically identify and intercept transaction requests from addresses on the OFAC sanctions list, while meeting the compliance requirements of the EU GDPR and the US SEC. The system has been certified by the Luxembourg Financial Supervision Commission and will be promoted to other financial institutions.

Market prospects and outlook, the "financial operating system" in the blockchain 3.0 era

According to the latest forecast by the Boston Consulting Group (BCG), the global institutional digital asset transaction scale will exceed US$7 trillion by 2026, of which the market share of DEX is expected to increase from the current 18% to 35%. As the leader in this field, XBIT's technology route and business model are being widely used by the industry.

It is particularly noteworthy that the "compliant DeFi" model pioneered by this platform is changing regulators' perception of decentralized finance. In its latest report, the U.S. Treasury Department specifically pointed out that its regulatory sandbox practice provides a "viable model for balancing innovation and risk prevention and control."

The technical roadmap shows that the platform will launch three strategic products in the third quarter of 2025: Institutional cross-chain lending protocol: support for physical asset mortgage lending including gold and crude oil; intelligent order routing system: automatically select the optimal transaction path, which is expected to reduce transaction costs by 30%; decentralized identity network: realize on-chain mutual recognition of KYC certification, and solve the cross-platform compliance problems of institutional users

The platform also announced technical cooperation with traditional payment giants such as SWIFT and Visa to jointly develop "instant fiat-crypto" exchange channels. This innovation is expected to shorten the time for cross-border remittances from the current 2–5 days to less than 90 seconds.

Conclusion

As blockchain technology moves from proof-of-concept to large-scale commercial use, the platform is reshaping the flow paradigm of global digital assets with a dual-wheel-drive model of "technical compliance + institutional-level services". The zero-knowledge KYC privacy protection solution and dynamic circuit breaker risk control system adopted by the platform indicate that decentralized finance has entered the stage of programmable, high-concurrency industrial-grade applications.

With the advent of the blockchain 3.0 era, XBIT's decentralized exchange platform is leading the digital transformation of global financial infrastructure with its outstanding technical strength and forward-looking strategic layout. The Boston Consulting Group predicts that by 2026, the global institutional-level digital asset transaction scale will exceed US$7 trillion, of which DEX's market share is expected to grow to 35%. In this new era full of opportunities, through continuous technological innovation and ecological construction, it is expected to become the core hub connecting traditional finance and DeFi ecology, and promote the entire cryptocurrency market to develop in a more mature and standardized direction.