Cryptocurrency firms and traditional financial institutions are increasingly merging strategies, with new fund launches, staking advancements, token burns, and regulatory developments illustrating the evolving harmony between digital assets and conventional finance.
Cryptocurrency firms and traditional financial institutions are increasingly converging, as digital asset platforms introduce investment products that echo conventional finance offerings, signalling a growing synergy between the two sectors.
Speaking to Cointelegraph, Gracy Chen, CEO of Bitget—ranked as the world’s sixth-largest crypto exchange—highlighted the blurring distinction between traditional finance (TradFi) and crypto markets. “There’s a growing synergy between traditional financial investments and the emerging crypto space,” Chen noted. She elaborated: “Crypto players are now checking out traditional finance as they see the opportunity to bridge it. The lines are blurring. Investors want flexibility, and products that can straddle both worlds are naturally attractive.” Chen emphasised the strategic advantage of integration in volatile markets, stating, “In a volatile market, integration is smarter than isolation.”
In line with this trend, Securitize, a tokenisation platform, has joined forces with DeFi protocol Mantle to launch an institutional fund designed to generate yield from a diversified basket of cryptocurrencies. The Mantle Index Four (MI4) Fund, announced on 24 April, offers exposure to major assets such as Bitcoin (BTC), Ether (ETH), Solana (SOL), and US dollar-pegged stablecoins. The fund also incorporates liquid staking tokens—including Mantle’s mETH, Bybit’s bbSOL, and Ethena’s USDe—to potentially enhance returns through on-chain yield. This initiative reflects growing demand from both retail and institutional investors for crypto exposure as a hedge against macroeconomic uncertainty.
Further developments in the crypto ecosystem include Mantra’s CEO John Patrick Mullin initiating the burning of 150 million Mantra (OM) tokens. The unstaking process began on 21 April and is expected to conclude by 29 April, after which these tokens will be sent to a burn address, permanently removing them from circulation. Mullin described this move as “a first step in rebuilding trust with the community, but far from the last.” Mantra is also in discussions with ecosystem partners about burning an additional 150 million tokens, aiming to reduce the total supply to 1.67 billion and decrease staked tokens by over 26%.
On the funding front, Symbiotic, a cryptocurrency staking protocol, closed a $29 million Series A round led by prominent Web3 investors such as Pantera Capital and Coinbase Ventures. Over 100 angel investors participated in the round, including major blockchain projects like Aave, Polygon, and StarkWare. The funding supports Symbiotic’s Universal Staking Framework, intended as an economic coordination layer that enhances blockchain security through staking. The framework is modular, allowing networks—whether monolithic or modular, layer-1 or layer-2—to secure themselves using any combination of cryptocurrencies. Misha Putiatin, Symbiotic co-founder, explained to Cointelegraph that the framework allows “protocols to evolve security models over time while efficiently coordinating risk,” enabling seamless security upgrades without infrastructure rebuilds.
Meanwhile, regulatory developments in the United States continue to influence the market. The Securities and Exchange Commission (SEC) has delayed its decision on a proposed exchange-traded fund (ETF) holding Polkadot’s native token. The extended deadline for the ruling is now 11 June, following a filing on 24 April. The Nasdaq had initially applied to list the Grayscale Polkadot Trust on 24 February. This proposed ETF forms part of a substantial pipeline—approximately 70 crypto-related ETF applications are currently awaiting SEC approval, encompassing altcoins, memecoins, and derivatives. According to Bloomberg Intelligence analyst Eric Balchunas, asset managers are proposing ETFs “for everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between.” 21Shares is also seeking approval to list its own Polkadot ETF.
In terms of market performance, data from Cointelegraph Markets Pro and TradingView indicated that most of the 100 largest cryptocurrencies by market capitalisation ended the week positively. The Official Trump (TRUMP) token led gains, rising more than 73% following the announcement of an exclusive in-person dinner for top token holders by former US President Donald Trump. The Sui (SUI) token was the second-best performer, increasing by over 69%. Additionally, the total value locked in decentralized finance (DeFi) protocols continues to be tracked closely by analytics platforms such as DefiLlama.
These developments underscore the evolving landscape of cryptocurrency investment, marked by increased institutional participation, innovations in staking and fund structures, ongoing regulatory scrutiny, and dynamic market activity.
Source: Noah Wire Services
- https://sowhat.terminal3.io/p/the-growing-convergence-between-traditional – This article discusses the convergence of traditional finance and Web3, highlighting significant deals and new services that show increasing overlap between these industries. It supports the claim of growing synergy between traditional finance and crypto markets.
- https://www.cointime.ai/news/the-convergence-of-web3-and-traditional-finance-29914 – This piece emphasizes the integration of traditional finance and crypto finance, mentioning Nasdaq’s openness to crypto firms. It corroborates the trend of convergence and institutional participation in crypto markets.
- https://coinshares.com/us/resources/knowledge/the-convergence-correlation-of-crypto-traditional-financial-markets/ – This article explores the correlation between crypto and traditional financial markets, which aligns with the idea of growing synergy and integration between these sectors.
- https://www.flowtraders.com/media/1kymgo0i/navigating-the-convergence-of-crypto-and-traditional-financial-markets.pdf – This report discusses the institutionalization of crypto through products like stablecoins, which bridge traditional and digital finance, supporting the trend of convergence and integration.
- https://www.btse.com/blog/a-look-back-at-2023s-web3-breakthroughs-in-traditional-finance/ – This blog post highlights the progress in integrating Web3 technologies into traditional finance, noting significant advancements in 2023. It supports the narrative of increased institutional involvement and technological convergence.
- https://www.noahwire.com – While not providing a specific link within the source, this is where the original article about crypto developments and market trends could be found. It would offer insights into regulatory scrutiny, market performance, and innovative financial products.
- https://news.google.com/rss/articles/CBMigwFBVV95cUxPYk80X29GSFIyVEVNb1dTWF9JUHZkbFdxZmtCdHR2S1djdGNSTDBQUzBIWnB6MUJKTmFfTDFxMGRxSGY0U2lSbUVRSmx3RTRTSUVDNjlYbmNjNDlLckx4VjJIV1gzeEhnUC1TMGttZDJDb0xlMGNXOFZwUmFkM2VzU1hzMA?oc=5&hl=en-US&gl=US&ceid=US:en – Please view link – unable to able to access data
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The narrative includes recent events (e.g., the Mantle Index Four Fund launch on April 24 and regulatory developments regarding Polkadot ETF). This suggests the information is timely and not recycled from older sources.
Quotes check
Score:
8
Notes:
Direct quotes from Gracy Chen and John Patrick Mullin are provided. No clear evidence of earlier use of these exact quotes online could be found; however, without more context, it’s difficult to confirm these are the first instances.
Source reliability
Score:
8
Notes:
The narrative appears to originate from or be relayed by Cointelegraph, a known and reputable source in the cryptocurrency space. However, the original publication location isn’t explicitly mentioned.
Plausability check
Score:
9
Notes:
Claims about the convergence of crypto and traditional finance, as well as specific product launches and regulatory actions, are plausible given current market trends and developments.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative appears fresh, with recent and timely information. The quotes seem legitimate but lack earlier online references to confirm first use. The reliability is high due to association with known sources, and the claims are plausible within current market contexts.
