HashKey’s Rachel Qiu: On-Chain Finance Needs Diverse Liquidity Infrastructure to Scale
Stablecoins have become a key tool for on-chain settlement, but the scaling of on-chain finance hinges on overcoming liquidity supply bottlenecks and building financial infrastructure that supports the circulation of diverse assets and capital forms, said Rachel Qiu, HashKey On-Chain, at a recent industry event.
Qiu’s remarks highlight a growing consensus: while stablecoins have solved the settlement layer for digital assets, the next phase of growth requires deeper liquidity pools and more sophisticated infrastructure to connect traditional finance with decentralized markets.
The Stablecoin Settlement Revolution
Stablecoins have evolved from a niche crypto instrument to a critical component of the global financial system. With a combined market capitalization exceeding $150 billion, they facilitate everything from cross-border payments to DeFi collateral. However, Qiu argues that stablecoins alone are insufficient to support the scale of on-chain finance.
“Stablecoins have become an important tool for on-chain settlement, but for on-chain finance to achieve scale, the key is to break through the liquidity supply bottleneck and build financial infrastructure that can support the circulation of multiple assets and capital forms,” Qiu said.
Liquidity Bottlenecks Persist
Despite the growth of DeFi, liquidity remains fragmented across chains and protocols. This fragmentation creates inefficiencies, increases costs, and limits the ability of institutional investors to participate at scale. Qiu’s call for “diverse liquidity infrastructure” suggests a need for solutions that can aggregate liquidity across different asset classes and blockchain networks.
- Fragmentation: Liquidity is spread across multiple chains (Ethereum, Solana, Layer 2s) and protocols (DEXs, lending platforms), making it difficult for large orders to execute without slippage.
- Asset diversity: Beyond stablecoins, tokenized real-world assets (RWAs), and crypto-native assets, there is a need for infrastructure that can handle different types of collateral and settlement mechanisms.
- Institutional requirements: Traditional financial institutions require deep liquidity, regulatory clarity, and robust risk management tools before they can fully embrace on-chain finance.
Building the Infrastructure for Scale
The development of diverse liquidity infrastructure is not just about technology; it also involves regulatory compliance, risk management, and market structure. HashKey, as a regulated digital asset platform, is positioning itself at the intersection of traditional finance and DeFi.
Qiu’s comments come as the industry increasingly focuses on real-world asset tokenization and the integration of traditional finance with blockchain technology. The success of these initiatives will depend on the ability to provide liquidity for a wide range of assets, from tokenized treasuries to private credit.
Forward-Looking Perspective
As the crypto industry matures, the focus is shifting from speculation to utility. The next wave of growth will likely be driven by institutional adoption, which requires robust infrastructure. Qiu’s emphasis on diverse liquidity infrastructure is a timely reminder that the path to scale involves not just technological innovation but also building the market structure that can support it.
In the coming years, we can expect to see more efforts to aggregate liquidity across chains, develop new liquidity provisioning mechanisms, and create regulatory frameworks that enable institutional participation. The firms that succeed will be those that can build the infrastructure to connect the fragmented pieces of the on-chain economy.
